Tuesday, July 24, 2012

Financials follow up

Here's the closed FAZ position, I normally would have held this, but seeing I wanted to enter a FAS position it didn't make much sense (a VERY short term hedge?).

 Faz at nearly a 12% profit as a straight long (no options), I think it has more to go and will look for a better entry.

 Here's the Financial Sector today on a 1 min 3C chart in a leading positive divergence.

 Financials with a 5 min leading positive divergence-remember last night I was very interested in which direction these short term charts would go.

Financials larger trend is definitely negative, however the 15 min chart even shows some sign of a leading positive divergence at this level, it doesn't look like any kind of threat to the overall trend, but again, noise in the trend.

 FAS is a 3x leveraged long of Financials so it should look similar to Financials above/XLF. The 1 min chart in a leading positive divergence

 The 2 min in a leading positive divergence, remember the market is fractal in its behavior and almost all reversals are preceded by a head fake move, a move below support would pull in some shorts that could later be squeezed for a move higher.

 FAS 15 min trend is in a leading positive position.

 FAZ is the 3x leveraged short for financials, it should look the opposite of XLF and FAS above. The 2 min chart in a minor leading negative divergence, it doesn't look like a big threat, but it does look to be enough to create some counter trend noise.

 FAZ 3 min has a very strong base with a great positive divergence, but the recent movement looks like FAZ wants to consolidate. The base should allow FAZ quite a bit more upside when all is said and done.

The FAZ 15 min isn't horrible, but it's not confirming either, for these reasons I think the most likely near term move in FAZ will be a quick move down and FAS a quick move up. I'll be looking to re-enter FAZ on price weakness and 3C strength.

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