Trade Alert A look at FAZ (long)

Of course this is an ETF, actually a 3X levergaed bear ETF on financials, an easy way to short the financial sector. Understand there are dangers to ETFS as they are meant to approximate 1-day's returns, however I have successfully traded them in trending situations. They can become dangerous in lateral situations because of the compounding of the extreme leverage. However, I still like FAZ as a part of a portfolio, I believe it can have it's place in a diversified portfolio.

Here are the charts

 This is early on the X-over screen, but I do think the 3 signals are headed toward a long signal. FAZ has pulled back close to the yellow 10-day moving average which is typical expected behavior.

 The daily shows a nice positive divergence on an important timeframe.

 Here the 10-min shows a recent positive divergence today that is in leading position.

 Same with the 5 min chart

The Trend Channel shows the downtrend broken at the red box. If I were to get my toes wet here, I'd place an initial stop a bit below the trend channel around the white arrow. The more room you can give the trade initially, the better the chance of succeeding and you do not have to encounter more risk if you adjust your position size down. You can always add to it later.

FAZ has definitely changed character recently and is looking interesting at these levels.