Wednesday, March 3, 2010

FAZ

FAZ (3x leveraged short on financials ETF) is looking strong here with a tweezers bottom reversal, it also has fairly low risk in this area, just be careful of market correlation -for example if you already have a short on GS or JPM, FAZ would be a bit redundant and you wouldn't want 50% of your portfolio all in financials.

Reversal

Get your shorts organized, today we saw the gap up in the QQQQ that quite frequently is found the day after a shooting star, the only thing needed now is a close below $45.50 for an extremely reliable reversal pattern, the lower the better. Read Trade-Guild for more information on the broader market.

By the way, AAPL is in great position for a short right now.