FAZ Position Management

Yesterday I put out a trade idea, Trade Idea: FAZ Long toward the EOD. Today FAZ has been up over 3% and I could trade around it by taking those gains, but I feel the same way about FAZ as I do about VXX calls and SRTY long (both are giving me short exposure to the market) that I just posted, VXX Call Position and SRTY long Equity Position Management

Just as we saw earlier today with the market averages first and then the VIX futures, it looks very much like we get this continued noise/chop which has kept me from loading up the truck as I don't want to have a bunch of exposure out there and no dry powder in a choppy environment so I decided to keep most of the short exposure in the trading portfolio as well as some options, but not add to them until I feel we are at the right place and time to do so, my gut feeling from the charts is that will be early next week, Tuesday I'm thinking as of right now.

So I'm going to leave FAZ long (3x short financials) in place.

This is what the Financial sector looks like just so you know (XLF)...

 XLF 10 min is right in line with the market averages on the same timeframe, in fact XLF looks worse than most of the market averages so I think this is the highest probability and I want to trade with the highest probabilities.


 Even the 5 min chart (which we even saw some of the averages looking bad on this timeframe too, the QQQ specifically) doesn't look good and the positive divegrence is today (white) with a very small foot print and a very small divergence, at least thus far.

 This is the 2 min trend, leading negative with a relative positive today, this tells me the same thing, near term bounce like we have seen up and down the last several days and it looks like the negatives are just piling up even larger for a significant downside move, the one we are waiting for as far as adding positions.

This is a close up of the 2 min on an intraday basis so I do expect a pullback in FAZ, but this is such a weak divergence in Financials that I really don't want to let go of the FAZ position, I learned that lesson trying to get too fancy trading around AAPL when I knew the probabilities of a decline were very high, instead I was trading around small signals like this for better positioning and missed the initial move that led to a -45% haircut in AAPL.