FAZ Update

FAZ (3x short Financials) was one of the ETFs that really shaped up late yesterday, it's made a run this a.m., but it looks like it will pullback, I'm going to set some price alerts for that pullback.

Typically I might be looking more at an XLF put, but in situations where I think there's a better chance of a trending position or a position that has some legs rather than a quick pop, I prefer to use less leverage, there's SKF as well which is 2x leveraged bear financials.

Here are the charts and the XLF 1 min chart seems to confirm the idea of a pullback in FAZ.

 FAZ intraday very strong the last several days and especially yesterday, the small intraday negative looks like a pullback is probable so I'll be setting alerts for that.


 Migration is obviously apparent on the 2 min chart, the move under the yellow trendline looks like a stop run both from volume and the strength of the 3C signals in the area.

 Again migration of the divergence is what we want to see in a stronger, healthier divergence and this is leading beautifully.

 The 5 min chart

The 10 min chart.

I'm going to try to look specifically through the Financial Industry group and banking/investment banking sub-sector.