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Posts Tagged ‘BPFINA

Financial Bullidex ($XLF)

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BPFINAVIX090623Although the financial sector closed positive on Tuesday, the corresponding Bullidex fell .62%, to close at 159. Higher prices mask the internals of the sector, which is decreasing in bullish breadth relative to volatility. This divergence suggests that the rally is false, and that shorting XLF or FAS is a good idea.

XLF090623The XLF remains in an uptrend above a slightly rising 20sma, but it is still forming O’s below a falling upper Bollinger. A deeper pullback may be in the works if support between 11.45 and 10.99 fails.

If the banks go south, there will be sell offs in every sector as institutions rush for liquidity due to increased margin requirements. Better to stay defensive and wait for a sign of real stability.


Written by chucklesamadeus

June 23, 2009 at 7:29 pm

Look Out Below

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Here is a long term look at how bad this market is for investors.
Nothing is going up and the volatility is high.
Banks are making a run to 0.
The only potential silver lining is the catastrophic ratio between down/up volume, but I wouldn’t wanna try and call this capitulation ahead of time.

All in all, the market is clearly unable to catch a real bid, and as we begin to see 12/14 year lows get breached, people will get increasingly fed up. I suspect tomorrow’s open will be rough for the longs, but I’m keeping my eyes open for a “WHY THE FUCK ARE WE GOING UP?” rally.

P.S. Am I the only one happy to see the efficient market theory consume Berkshire Hathaway? Somebody buy Warren a Cherry Coke once you make a killing short AXP.

Written by chucklesamadeus

November 20, 2008 at 3:59 am


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