FAZ Outperforms Other Inverse ETF’s but FINU Outperforms FAS

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.

James Bailey

Author: James Bailey

James Bailey is an author, business owner, husband and father of two children. His vision is to broadcast the good news of Jesus Christ through blog sites and other media outlets.

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Ed H
Ed H
Member
August 3, 2017 8:59 am

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.

Maple
Maple
Member
August 3, 2017 11:43 pm

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.

Ed H
Ed H
Member
August 4, 2017 8:35 am

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.

Paula
Paula
Member
October 8, 2017 12:45 am

FAZ $13.90 now.

Fat B
Fat B
Member
August 10, 2017 3:39 am

James, silver is at $17 now so are you going to do a put option or are you going to stay in UVXY?

Joe
Joe
Member
August 6, 2017 10:58 am

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/

mem
mem
Member
August 6, 2017 2:38 pm
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… Read more »
Phanuel
Phanuel
Member
August 7, 2017 7:22 am

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

Phanuel
Phanuel
Member
August 7, 2017 7:26 am

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!!

Joe
Joe
Member
August 6, 2017 10:41 pm

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.

Karen G
Member
August 7, 2017 8:17 am

Great point. We always must pray for discernment.

Freedom2017
Freedom2017
Member
August 5, 2017 6:56 pm

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.

Ed H
Ed H
Member
August 4, 2017 9:56 am

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.

Donna D.
Donna D.
Member
August 4, 2017 10:08 am

God bless you all. I got to say personally I’m relieved to be off of that FAZ roller coaster.

Ed H
Ed H
Member
August 4, 2017 4:05 pm

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.

JEC
Member
August 7, 2017 5:48 am

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.

Ed H
Ed H
Member
August 7, 2017 8:30 am

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.

Phanuel
Phanuel
Member
August 7, 2017 9:07 am

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

Cam
Cam
Member
August 7, 2017 11:09 am

Phanuel, do you think we will still have a correction (FAZ going to $46) before the DOW gets that high?

Phanuel
Phanuel
Member
August 7, 2017 11:20 am

Yes brother!

Cam
Cam
Member
August 7, 2017 2:42 pm

Thank you Sir!

K Shine
K Shine
Member
August 7, 2017 12:12 pm

Phanuel and Ed H. Do you mind sharing what vehicle you will use to ride the Dow up? Thank you as always!

Ed H
Ed H
Member
August 8, 2017 1:32 am

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.

K Shine
K Shine
Member
August 8, 2017 5:16 pm

Thank you Ed H!

Phanuel
Phanuel
Member
August 7, 2017 1:24 pm

Hi K Shine
I use SPXL and UPRO. I went long with SPXL last week.

Shalom

K Shine
K Shine
Member
August 7, 2017 2:24 pm

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!

Phanuel
Phanuel
Member
August 7, 2017 6:49 pm

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

Matt NZ
Matt NZ
Member
August 7, 2017 5:00 pm

I know you’ve covered this Phanuel but what bitcoin exchange do you use?

Phanuel
Phanuel
Member
August 7, 2017 6:53 pm

Matt NZ
Gemini is 100x better than coinbase.
Bittrex is also good. My favorites are Gemini and Bittrex.

Chris
Chris
Member
August 4, 2017 4:55 pm

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

serge
serge
Member
August 7, 2017 10:29 am

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.

Carolanne
Carolanne
Member
August 3, 2017 11:31 am

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!

John E H
John E H
Member
August 3, 2017 10:16 am

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

Sheris
Sheris
Member
August 3, 2017 10:25 pm
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