Trade Idea BCS (Short)

BCS is a long term short trade, it may be well suited to long term options. In general, BCS may follow the market path I laid out to some extent last night, except I think it will weaken and see the second shoe drop quicker then the market.

 This is a 5 day chart of BCS-Barclays, although the pattern is not a rounding top, the volume pattern is similar, in any case the volume pattern is not bullish. Nor are MACD and RSI. You can see the volume pick up substantially on the break of the top.

 Here's a multi-day 2C chart from 2006, right now BCS's 3C chart is making new lows despite price being lower in 2009, this is a strong leading negative divergence, the most important divergence on one of the most important timeframes available. This bank is not coming back.

 The 15 min chart showed no accumulation on the recent run up which is now going negative, this is a case of a rising tide lifts all boats and not a short term bullish move n BCS, which means the big boys are afraid to put money in this stock even when they are fairly sure it is going to bounce.

 Here's a more detailed 10 min chart, also at a negative divergence today

 And the 5 min looks the same, it's actually a leading negative divergence.

 The 1 min chart is in horrible shape. Being BCS is up nearly 5% today, it might not be a bad short to intermediate term spec. short play here.

Ultimately if the market does what I laid out last night, here are several possible targets, I would consider BCS a short at nearly any one of them, but I would want either a pure equity short or long term options if available.