With the market looking like this...
A 10 min negative divergence, highly suggestive of a pullback in the market which we have been looking for since Wednesday when we closed FAS and other short term leveraged long positions.
It should be little wonder then, when short term positive divergences popped up in
FAZ and
FXP the trades were taken, as mentioned last night, they are trades I intended to wrap up by today so they were always meant to be short term and they did well for us.
As for FXP today, as mentioned already last night, it was always my intention to wrap these up by the close today.
FXP longer term is a position I actually like, it moves opposite the market so it makes sense as we look for core shorts after a bump higher, FXP should be looking good as a longer term trade and in that respect I like FXP a lot. As for yesterday's trade, that was always meant to be short term/pullback in the market ONLY.
The FXP 5 min chart isn't confirming the upside today, it's not sideways here, but since it's such a new move I doubt it needs to do that. I have no problem and feel fine closing this down FOR NOW.
FXI has better volume, this is the opposite of FXP, it is the bullish ETF and trades with the market, it has a positive divergence on the same timeframe that FXP has a negative, so near term I want to take profits in FXP.
FAZ was entered for the same reason, we were long both FAS and FAZ this week and made money on both!
FAZ-3x Bear Financials did well for us today considering we bought it yesterday for a short term trade and with the intention of closing it today. The 2 min chart should easily confirm if the move was strong, it didn't, it was just what we picked it for, an asset that moves opposite the market for a pullback in the market.
Longer term I like it, however like FXP, we are not there yet, but rapidly approaching!
FXP +1.88%
FAZ +4.25 today
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