FAS- 3x Leveraged Long Financials

FAS (Financials) is looking interesting here as well, as you know I consider Tech, Financials and Energy the 3 groups of the 10 major S&P groups that are necessary to maintain a rally of any importance.

Recently we've been seeing some very fast (1- 2 days) rotation between Tech and Financials so Tech has been looking pretty good recently, Financials are looking pretty good here and I already covered Energy earlier.

If I had room and wouldn't violate risk management rules (including having a portfolio that has more long exposure than short exposure when my bigger picture view is very bearish). I still think the long positions can be profitable in getting to where we'd like to be-selling price strength short.

In any case, if I had the room to add to Financial longs like FAS here,  I would. I consider the charts to look appropriate to start or add a speculative long position and I prefer the leveraged ETFs for this particular phase.

Here are the FAS charts (Long Financials 3x)

 First I want to start with one of the longer charts, a 30 min that shows the range and a relative positive divergence, the negative divergence right before FAS broke under the range in what I believe to be a head fake move and the positive divergence (leading) in the head fake move area, which would suggest FAS is/was accumulated at lower prices where supply from longs being stopped out would be available.

 Short term the 2 min chart is shaping up this afternoon as it moves to a leading positive divergence.

 This is the same chart, just zoomed out a bit further so you can see the longer trend, note the negative divergences right before the break below the range and the positive divergence at the break below the range.

 This is also the same timeframe, just zoomed out even further to encompass the entire event since the mid-October reversal lower (that week we were long FAS until Wednesday and then long FAZ after until we expected a range to form). You can see the overall positive and leading positive divergence through this process.


FAS 10 min also with a negative divergence just before the break below the range and a leading positive divergence leading at a new local high on the chart as FAS broke below the range.