Wednesday, July 22, 2009

XLF Update: below support

XLF looked heavy yesterday and seemed a great short entry. The fake out at the close didn't deter me and I held my FAS short.

(Don't look at FAS/FAZ for anything but intra-day; better to use XLF for longer term analysis.)

I hate trading the triple leveraged stuff, but I made this exception, and almost never hold them overnight... so I broke a few rules.

The big question is whether this overhead resistance will hold, so stops should be set at yesterday's daily high as the set-up.

PNC keeps gapping down at the open, so I've been going short at the close, expecting to keep the position for a while, but since it was down a few percent at the open, I've been covering. I'd like to hold it short for a longer time period, but I can't resist the profits.

I still maintain that IF this whole thing blows up, the financials are primed to lead the way down, altho tech is starting to look overbought as well.

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