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Monday, June 22, 2009

Challenge Project: The FAZ (Triple Short the Market ETF)

So I have a record of it, and for those that didn't catch my Twitter update, I wanted to put in a little note that I put an order in the Investment Account for the Challenge Project to purchase 25 FAZ at 4.95 limit stop, GTC (Good until Cancelled - 60 days), as well as an order for 200 at 4.95 Stop GTC for my own accounts. The FAZ is trading in the pre-market at $4.83. So the market would have to confirm my thoughts, and make it up to $4.95 (meaning the stock market would be falling), before my order is in and working. This is just a short term hedge

As I mentioned in the "Week in Review" podcast, this is a way to hedge my Dividend DRIP holdings with what I call a "locked leveraged" item. As such, it would be a position trade. Position trades I carry out in my Investment Accounts.

So the orders are in and working. In addition, the Live Cattle option is just within a few ticks of my profit objective at the moment. I'll have a video of that later ...

Edit: Filled on FAZ for the Challenge Project at $4.90, 25 shares. That's in the Challenge Investment Account.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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