Smoking Securities

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Posts Tagged ‘XLF

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

Attention Traders ($XLF $FAS $FAZ)

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swapsale2Yes, the SIMULTANEOUS SHORT SALE of FAS and FAZ has been profitable, so forget buying these pieces of junk, sell ’em when you want to take a position!

Please bear in mind the risk of short selling. If you need to hedge, there may be no shares to short, causing alpha draining buys to cover and/or margin calls.

Written by chucklesamadeus

April 2, 2009 at 6:55 pm