Yesterday I was looking at XLF as a Put option (short) or FAZ (3x short Financials ETF) as a long position, the only thing I wanted to see was a head fake move above the recent highs with 3C signals showing it was likely a head fake move, I'm satisfied with that.
Here are the current XLF (Financial Sector) 3C charts,
I will be opening a position this afternoon...
XLF 2 min intraday shows no sign that today's move up was anything other than a head fake/bull trap move.
The 3 min chart could be leading positive before 11 a.m. if there were real strength there, I don't see it.
The 5 min chart goes from down trend confirmation to accumulation in to the 9th and a leading negative position.
The important 15 min chart is in deeper leading negative position today. The "
Igloo with a chimney" is exactly what I described I'd be looking for today, that's exactly what we have above.
Head fake moves are often EXCELLENT timing markers, they tend to occur just before a reversal and
the reasons why are in my two part article linked at the top right of the member's site, "Understanding the Head Fake Move" parts 1 & 2.
The 30 min and 60 min charts make sense as well, the move above the former high is one thing I was looking for in this move, the move above $21 was something else I was looking for and we have that.
Both FAZ and XLF have daily Doji star reversal candles as of right now.
I will be entering a Financial short position either in XLF puts or FAZ long, I might even look at both.
The ATR for FAZ over the last 10-days is $1.12 as best as I can figure it, I'd probably base my stop off some denomination of the ATR, a full $1.12 risk would be what I mean, whether you apply that to today's low or present price would be individual preference.
I'll let you know what I go with before I open it, remember I already have SPX short and IWM short exposure using 3x leveraged ETFs, SPXU and SRTY respectively.
No comments:
Post a Comment