XLF FINANCIALS UPDATE

This is the post yesterday for XLF in which we were looking for the trade to come to us...

Here are the charts for XLF, I didn't wait for the intraday head fake that I thought possible because of a clear resistance zone all day (head fake moves are usually right before a reversal, it doesn't matter what timeframe, we can get a daily one like today and then an intraday one that is a fine tuned trigger for the broader daily head fake).

As usual with a head fake move we want to confirm it's a head fake, in this case we want to see distribution instead of confirmation or even accumulation on the move, however when we already have longer charts like 60 min or even 15 min that are significantly negative, the probabilities are very high that the move would be a head fake move, I just like to double check as long as I have the time, why not?

Here are the charts for XLF, FAS which is the 3x long leveraged version of XLF and FAZ which is the 3x short version of XLF.

 XLF 4 hour's leading negative is not only a long term negative, but the fact it's leading at a new low makes it time sensitive.

 XLF 1 min intraday, note that I marked Monday because this is where we saw accumulation and the day before Putin made his "Peace overture" that the market ran with. The leading negative divegrence is a very good indication that today was indeed a head fake move as suspected yesterday.

The 2 min chart seeing migration of the negative divegrence only strengthens that case.

The 5 min chart strengthens the case for the entire week.

I can keep going, but we already saw these charts yesterday, the point was the yellow trendline was where the trade comes to us, being even the 15 min is leading negative at a new low for price at a higher high was evidence enough that the probabilities of today's move would be confirmed as a head fake move and again if you haven't read my two articles, you are missing a lot of market psychology and the numerous reasons these are so prevalent and so useful to us.

FAS 3x long Financials... I like using these to confirm, especially if there are numerous versions by different management companies (Pro Shares, Direxion, etc.). MANY TIMES YOU'LL SEE DIVERGENCES APPEAR FIRST IN LEVERAGED PRODUCTS, I SUPPOSE THAT'S BECAUSE OF THE LEVERAGE.

 Again the 1 min confirms negative today on the gap up

The 2 min confirms...This is why I said earlier today, "We have time", it takes time for these divergences to migrate, also a flat range is usually pretty indicative of underlying activity even though by price alone it seems like nothing is going on, it is actually one of the busier areas in underlying trade.

 FAS 3 min with the divegrence we saw market wide on Monday, I still love Tina making 4x her investment in a matter of hours as she acted on this divergence with weekly calls, awesome trade and one of the reasons I provide these updates.

 FAs 5 min leading negative on the week, not a surprise considering, I'm betting Putin made some nice money too this week on calls.

And again we don't need to go this far to confirm a head fake move over a day, but the fact a 15 min chart is leading negative intraday tells us something about the strength of underlying trade.

 FAZ 3x short Financials

 Note Monday and look at that flying positive divegrence, this is confirmation since FAZ trades opposite XLF and FAS.

 2 min confirmation

Awesome 5 min confirmation and this is the level I marked yesterday and said to watch out for today in FAZ on an XLF head fake run, intraday you see the same flat support (resistance in XLF), this is what I was hoping to hold out for.

Again we don't need to go this far to confirm a head fake, but since I did with the others, the 15 min leading positive intraday, great looking charts, this IS THE KIND OF TRADE I LIKE TO SET UP, LET IT COME TO US AND I JUST CAN'T IGNORE THESE KINDS OF SIGNALS.