While driving home from a trip, in the middle of nowhere, I drove past this little convenience store called FAZ Corner. Of course, I had to pull in and take this photo.
In a prophetic dream in 2014, I saw an inverse ETF skyrocketing after a sudden collapse of our financial system. The stock symbol I saw was FAZ, which is a leveraged ETF bear, which moves in the opposite direction as the Russell 1000 Financial Index, three times as fast, so when the economy tanks, FAZ goes up fast.
Historically, the financial sector has led the way down during stock market crashes and appears likely to repeat that pattern in the next major crash because financial institutions are loaded down with more debt and greater risks from derivative products today than ever before. These conditions confirm FAZ would do well when the collapse happens. My plan is to own lots of shares before then, but FAZ is not the only game in town. Other inverse ETF’s are available, including FINZ and WDRW.
Like FAZ, FINZ and WDRW are 3X inverse ETF’s tied to financial stocks, but instead of being based on the Russell 1000 Financial Index, FINZ is based on the S&P Financial Select Sector Index and WDRW is based on the Regional Bank Index. FAZ and WDRW are both owned by Direxion while FINZ is owned by Proshares.
I recently compared price changes from election day in November 2016 to July 28, 2017, and found FINZ (-58.2%) and WDRW (-62.8%) dropped faster than FAZ (-51.9%), so the indexes they’re based on showed greater strength than the Russell 1000 Financials. Normally, strength is a good thing, but for inverse ETF’s, the goal is to avoid strength and find the weakest sector that will crash the hardest because the price moves in the opposite direction.
| Symbol | Description | Nov 4 2016 | July 28 2017 | Percent Change |
| FINU | S&P Financials 3X Bull | 37.42 | 75.97 | 103.0% |
| FAS | Russell 1000 Financials 3X Bull | 27.42 | 51.52 | 87.9% |
| DPST | Regional Banks 3X Bull | 33.30 | 58.52 | 75.7% |
| FAZ | Russell 1000 Financials 3X Bear | 33.49 | 16.10 | (51.9%) |
| FINZ | S&P Financials 3X Bear | 29.30 | 12.25 | (58.2%) |
| WDRW | Regional Banks 3X Bear | 118.45 | 44.01 | (62.8%) |
During the strong bull market of the past nine months, all inverse ETF’s got hammered hard, but while FAZ declined sharply (-51.9%), it was not as bad as FINZ (58.2%) and WDRW (62.8%). So, FAZ appears to be the best choice because it’s based on the weakest financial sector. When severe trouble comes, FAZ should perform better than FINZ or WDRW.
Each of these bearish ETF’s have bullish versions, which move in the same direction as financial stock prices. The bullish version of FAZ is FAS while the bullish version of FINZ is FINU and for WDRW it is DPST. FINU(+103%) outperformed FAS (+87.9%) and DPST (+75.7%), so in a bull market, FINU looks like a better choice than FAS or DPST.
Another big difference between these ETF’s is options trading is not available for FINZ, FINU, WDRW, or DPST, but is available for FAZ and FAS. However, anyone trading options for these ETF’s should beware of the risks because in the past, when Direxion split shares of FAZ and FAS, they converted open options contracts from standard to non-standard, which immediately made them almost worthless because they were replaced by new standard options. Anyone owning non-standard options was stuck with a huge loss. In a market crash, stock splits would be more likely because prices would be moving fast. As if options trading was not already risky enough, this adds another huge risk to the equation, which is why my preference is to own these ETF’s outright and avoid options for them. There have also been prophetic warnings about trading options for FAZ and FAS. At the very least, it would be a good idea to read the contract carefully (but no one ever does).
In summary, FINU outperforms FAS and DPST in a bull market while FAZ outperforms FINZ and WDRW. This information is provided as a starting point for prayerful consideration and not as a recommendation for investing.
Author Bio
How about inverse ETF for Dow Jones? Like DOG, DXD and SDOW?
FAZ $13.90 now.
FAZ $11.71 now!
And it’s likely going lower soon as SPX is expected to move higher. Leveraged inverse ETF’s are all about timing and not for buying and holding long term. FAZ will blast off when that time comes and God is able to show us when it’s time to buy so we don’t have to incur losses holding it in the meantime.
Hi james, i would like to understand the purpose for using FAZ to short the financial sector/banks at the right time. The price of FAZ match the Bond (using Vanguard total bond as ref) for the last 1yr on downward trajectory. Since FAZ utilise/buy treasury in its portfolio and it is decaying on daily basis, how would FAZ benefits if the bond/treasury price drop (yield rising)?
FAZ is an inverse ETF based on the Russell 2000 Financial Index. It moves up three times as fast as the financial sector moves down, so if it is bought and sold at the right time, it can be very profitable. It is not tied to bond prices or yields, except to the extent those impact the profitability of financial institutions.
FAZ decays over time, so it is not a good ETF to hold for long periods. It’s best to buy only when the financial sector is expected to drop sharply or crash and sell when they hit bottom.
James, silver is at $17 now so are you going to do a put option or are you going to stay in UVXY?
Silver has just hit $17.10, so I will be getting put options on SLV today. If it doesn’t go much higher, I’ll get as many options as I can afford, but even if it goes a little higher, I will still get some options because in the graph I saw recently, it went up over $17 and then right back down again. So the only question in my mind is whether this is the start of the two legs down or just another drop.
Regarding UVXY, it could go much higher, even up to $60 if we are starting the 5% drop now. However, I don’t have as much confidence about that as I do about silver. From a purely technical perspective, it would be more likely to top at about $36.50.
James, what strike price are you going to order? Slv strike price is different from silver spot price right?
I always quote spot silver prices, which are different from SLV. I am not trading any options for this move because the pattern did not fit the two legs down and I did not see any numbers for this move. I simply saw it rising above a horizontal line and then dropping right back down again. So I bought some DSLV shares today since silver went up to about $17.25. It is still trending higher, but I think we’re close to the top. This looks like it will be a quick in and out trade within a few days.
James, I’m in DSLV as well now. Hopefully this will be a good trade. I missed this run up with UVXY. I was going to jump in but, Phanuel was thinking it’s only going down one floor then back up I believe. Anywho, I’m in the DSLV pot with you. Any idea where we should jump out?
The only thing I saw was a line going up above a horizontal line then dropping back down. I believe the horizontal line was $17.00, but no prices were shown.
During my prayer time today, I saw a blond haired white woman walking up the first few steps of a flight of stairs. She was wearing a black shirt and short black pants. That sounds like silver and oil moving up, but I don’t know the timing. It might mean silver will move a little higher before dropping, or another possible interpretation is the downside move here is limited. If it drops to $16.50, I will be locking in profits. For now, I have a stop limit order set to kick me out right where I got in if silver moves back up. If it kicks me out, I will be looking to get back in after it moves a little higher. It’s already above the Bollinger Bands on the daily chart, so it looks like it should drop soon.
Catching SVXY on the way back up should be a good trade too.
Hi James, What strike price are you using if it goes up a little higher above 17.10?
Thanks
I am avoiding options and just buying DSLV because it has not conformed to the pattern for the two legs down. I only saw the shape of a graph without any numbers, so I will be playing defense and protecting my profits with stop limit orders.
Silver went up to $17.17, so this is probably not the start of two legs down. I am still expecting it to drop steeply soon because of a chart I saw showing it go above $17.00, then dropping back down again, forming an upside down U-shape, but not sure where the top or bottom is. I’ll probably just buy DSLV rather than put options on SLV.
James,
I have some impressions that Phanuel’s Aug 21-28 maybe matching your uvxy 25 – 60 timeline. FAZ 46.56 may still be further down in time. When your silver 17.10 start to drop two legs down, do you have any revelation from the Lord that what will happen to equity market? For silver to start the two legs down now, North Korea tensions and China-India tensions have to be starting to disappear. But at the moment, China-India tension still has no sign of disappearing.
Silver did not conform to the pattern I was looking for to set up the two legs down. I was looking for a top at $17.10, but it is now at $17.23 and still trending higher. However, I recently saw another chart showing it moving up steeply over a horizontal line and then dropping right back down again. I believe the horizontal line was $17.00. So, even though it is not the two legs down, I believe it’s still a good trade. I am playing it safe and avoiding options since I did not see any numbers to know where the top or bottom is. I will likely get some DSLV later today.
Regarding UVXY, I did not see any dates, just a chart showing equities dropping twice with the second drop much bigger than the first. There was so much activity in between the two drops it make me think it must start soon to complete by October 16-17.
The only correlation I saw between silver and equities was when equities were crashing and silver was soaring higher. I believe that happens in early October. Then when equities hit bottom on October 16-17, silver should hit the top and then it crashes too.
James
Very informative interview by Greg Hunter of USA Watchdog with Cliff High. Topics covered include cryptos,dollar,precious metals and stocks. I am convinced that the blow off we are expecting in Dow, ie above 30000 is only possible in a Venezuela type of scenario which you covered in the four seasons of the dollar.
http://usawatchdog.com/cryptos-reveal-western-world-failing-now-clif-high/
You gotta be careful with some of these Non-Christians. I respect Clif High, though he is anti-God and the consummate secular humanist, and I do think some of his research has merits, but you gotta be careful. He has said himself, he is the worlds worst silver price forecaster, in the early decade of 2000’s his Alta data was showing $600 silver. That may one day come to pass, but its been almost 17 years since the data showed him that. Don’t get me wrong, I listen to whatever Clif puts out, but I factor in the fact he doesn’t believe in God and the whole Alta thing. For instance, I think he is probably right that in general Bitcoin/Ethereum are the safest crypto bets and am much more skeptical of the flavor of the week ICO’s that him and his buddies are pushing selectivley (Tenx, Pillar, Veri, Populous). Honestly, I am skeptical of crypto in general, but I am still exposed to it. I thought, if anything is going to be a mark of the beast system it is going to be crypto based. The mark will have an RSA private key ID embedded in it and if you don’t have the mark you wont have any currency to transact with. These same guys are already calling for the dirty/nasty/paper fiat to be replaced with crypto. The fact that a public blockchain ledger allows the controllers to track all movement if they know who has the private keys which they would, makes it terrifying indeed. Again, don’t get me wrong, I don’t believe Bitcoin or Ethereum are the Mark of the Beast as it stands now, but it makes excellent sense that blockchain/crypto in general may well be the cornerstone of a future mark of the beast. Particularly if the private keys are impossibly long, say 65,536 + character private keys stored in an implant/mark on the body that can be scanned similarly to the way QR private key codes are scanned. Might even be quantum computing safe with a large enough key space. Though I’m sure the Beast will have mastered quantum computing like we can’t even imagine today with the Dwave stuff
Again, I like listening to Clif High and his cohorts (Joe and Bix), but I also realize they only see a small part of what is going on. His Alta algorithms assume people in general are psychic or have pre-cognition without realizing it and when enough people unwittingly exhibit the same information in his datasets he sees that as a hit/strong possibility of occurring. That is all well and perhaps possible, but it doesn’t factor in black swan events that the “psychic” populace are normalcy bias’ed out of even having any pre-cognition for, let along Sovereign God’s prophecy and timeline that He just might well decide to veil from the “psychic” populace populating his datasets. Psychic is not omnipotence, assuming true “psychic” actually exists as Clif’s theory suggests.
mem
Agree with you. Normally i don’t follow him but in this instance his views on gold vs silver,dow explosion,silver based cryptos etc,is in concurrence with what was discussed here repeatedly.
Mem
I had a dream to intercede for Clif High. The Lord is after his soul. And I agree the mark of the beast will come from the block chain technology, that’s why the Lord told me to stay away from Pillar token. That token is just too creepy. It doesn’t make the block chain technology itself bad ( like the internet), but the the enemy will use the technology for evil. Tokens like bitcoin, Eth, Ltc, VERI, PPt are safe because they don’t infringe on personal identity. However, the Pillar token is all about personal identity…and they have a 2030 agenda. Stay away from such!!
Shalom
The block chain technology shows how close we are too the end of time…
No one will be able to buy or sell at some point with a particular token using the block chain technology
My first suspect is the Pillar token!!
Great point. We always must pray for discernment.
I know Faz will explode when the banking and financial systems collapse one day, this could be a long way off, when oil was tanking in 2015- 2016 there was an oil etf that soared, I can’t remember what it was, but it came close to 500/share. I believe Faz will go higher when the banking/financial sectors crash. A year ago when I was in Faz, I was asking The Lord how high Faz would go up, some time had passed, it could have been months, I don’t remember, but I had a dream and saw a green stock number on a stock exchange of 452, I was never shown what the stock symbol was for the green 452 number, but I have often wondered if it could have been a Faz number.
Z3,
FAZ just hit 15.50 to the penny. I canceled my order. It went lower than before. I was hoping for a double bottom but it has gone below. Could go even lower now.
Also the russel looks like it is forming a flag and could go much higher. Not good for FAZ. Keep watching.
God bless you all. I got to say personally I’m relieved to be off of that FAZ roller coaster.
It’s not one to own for more than a few days. The decay rate is too high. The daily rebalance is the killer
That being said, when extreme volatility and banks start hurting, this will be a rocket. Until then it will lose you money.
A better option is to short the top ten holdings that FAZ invests in.
Prophet Johny Enlow saw the DOW hitting 22,000 several months ago and it has just happended. He recently said the Lord showed him 27,000 in October. He thinks it probably is this October, but adds that we all see in part. Be careful with your investing. A lot of people lost money investing.
Jec,
I try to be very careful. So last night I was doing some charting on the DOW and I came up with a potential of 28,000. Not prophetic just using trend lines. Very interesting.
Ed H
When I first shared Dow 30,000 and 40,000 several months ago it seemed impossible and many found it hard to believe……not anymore
Shalom
Phanuel, do you think we will still have a correction (FAZ going to $46) before the DOW gets that high?
Yes brother!
Thank you Sir!
Phanuel and Ed H. Do you mind sharing what vehicle you will use to ride the Dow up? Thank you as always!
Hi K Shine
I use SPXL and UPRO. I went long with SPXL last week.
Shalom
Phanuel. Thank you brother for your reply. Wasn’t clear about waiting for correction before going long. Please share some nuggets with us after the conference next week. I waited too long to register and it got sold out! Blessings to you and your family!
Will do K Shine
Blessings to you too
I’m watching to see if the August temporal marker matches the S&p (top) marker.. we have 3 weeks to find out.
Shalom
I know you’ve covered this Phanuel but what bitcoin exchange do you use?
Matt NZ
Gemini is 100x better than coinbase.
Bittrex is also good. My favorites are Gemini and Bittrex.
K Shine,
Ditto what Phanuel suggested. Also DIA,SPY and keep the miners on your radar they have been destroyed the last few months. AG is almost at 52 w lows.
Thank you Ed H!
AMEN to that why I’m going to stick with gold and silver stocks that did 5x better than FAZ.
Even if silver tanks along with mining stocks go with it will be a buying spree for me for the next run up in the next few YEARS
Amen Donna !
After bleeding most of my position away in FAZ, I am, now like you, relieved that I sold out on that sled this morning.
It’s all in the timing on FAZ, and buying at the $40.’s was at the wrong time. However, there was no problem filling the Sale Order at $15.51 – HA !
Think I’ll go buy some physical silver when it does to around $12.
Thank you. Your dream in 2014 was the first post I ever read of yours, discovering it in 2016. It had a huge impact on my spirit. Looking back at your prophecies from the summer of 2015, you accurately warned of the downturn of the market that did indeed come to pass then I have been praying and have felt affirmed about FAZ being the way to go. The confirmation of this storefront is a wonderful sign. It’s gently thundering out as I write this, like the Lord is gently affirming this is his leading again. Thank you!
Kim Clement In September the fall will be a great fall and a turn around. Interesting how many of your subscribers prophecies are touched on in this one.
https://www.youtube.com/watch?v=SL1xBfEpUFA
Or maybe this.
https://m.youtube.com/watch?v=KhDixsVpyx8
James,
Thanks for the effort put into this. I have had an open order for FAZ at 15.50 for a few months now. Yesterday it hit 15.52. So close. We will see how the markets go this week.
Ed, how did you come up with 15.50 FAZ number? Was it a revelation from God? I’ve been worried recently about FAZ going lower but then I remembered someone wrote about a buy order @ 15.50. Keep posting if you get anything else.
Maple,
The 15.50 was a lower fibonnaci number from many months ago. It was actually closer to about 15.00 .
At the time it seemed so low I bumped my buy order up .50. I also cut my order by half of my original .
The chart for FAZ is horrible. As long as the banks keep investing in the markets FAZ is a dud.
Watch XLF it is the etf for the financial sector. It is just 1 penny off it’s 52 w high. As long as that is up FAZ will be down.
Other than the fib numbers It’s really hard to even use technical analysis on an etf. There are no lower gaps to fill for a potential support. The trend line is useless.
The 1hr charts MA are lower than the price of FAZ so I still think it can go lower.
Prophetically I have been praying for help. I love the math and the charts but have not received any dreams of FAZ.