Tuesday, March 5, 2013

Financials looking Rickety Up Here

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.

No comments: