Monday, December 5, 2011

Financials Update

I was looking at some individual financials and noticed how quickly their 1 and 2 min charts had turned south, there were several that all looked the same so I looked at XLF (Financials Industry) and I found the reason why. XLF is trading up well today, it's starting to look a little like a wedge intraday, but the charts below are what caught my attention.

 Here's the intraday trade...

 And this is the 1 min chart that I had seen in other financial stocks when I decided to check XLF.

 This is a zoomed view of the same 1 min chart.

 The other financials I looked at had a similar looking 2 min chart, and now I know why.

 Zoomed view of the 2 min.

 They also had relative negative divergences like this on the 5 min charts.

 And the important 15 min charts looked bad as well as XLF's 15 min chart is considered a leading negative divergence.

 I popped over to look at the Financials leveraged Inverse (short financials) ETF, FAZ and saw the exact opposite as you can see on this 1 min chart and below on the 15 min chart.


I'd be keeping an eye o the group today, this trade does not look lke it is supported at all in underlying trade.

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