I already have a position opened in FAZ (3x short financials), whether you prefer the leverage or not, Financials don't look bad here as a short, there's a shakeout move today and a stop can be put a bit above the intraday highs from today.
I wouldn't use options, I'd look at this as more of a position trade.
2 min, looks like this gap has been under distribution all day
10 min
30 min, it's not the first time a leading negative divergence jolted financials, this position however (compared to price) is deeper leading negative.
The 2 hour chart
And the Trend Channel, I've seen very few trends worth staying in once the channel is stopped out as it was at the red arrow, it's mostly just volatile chop for a bit before reversing trend, these are the few percent that are the riskiest to try to get.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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