FAZ Update

We're getting some movement out of the FAZ long entered earlier in the week, I decided not to use options and just closed a profitable FAS hedging position and added FAZ (so I wasn't hedging a hedge). FAZ is up over 3% using only the built in leverage as I decided not to use options just because I didn't want members thinking that was the only tool we have and because I thought FAZ would deliver a decent return without the need of leverage.

Here's today's update as it looks like we entered at a pretty good level (letting the trade come to us).

 Another bullish long term descending wedge acting totally different from what Technical Analysis Dogma tells us.

 I don't usually believe in straight up or down moves so I think between these two levels of resistance there's some room for consolidation or chop, but ultimately I think FAZ should be able to break above the $26 level without much trouble and if there is a head fake move at support of the SPX bear flag, then FAZ could see a quick move quite a bit higher.

 The 2 min chart with an overall rounding base and very positive leading divergence.

 FAZ 3 min signals

As to the long term primary trend, FAZ has a fairly large leading positive daily divergence, this is rare for a daily chart, it's also in the basing area after the descending wedge. In other words, the market enters the primary bear market, financials should head lower with everything else, FAZ should head much higher as it would be in a primary trend bull market.