Update

Today my SRS & my FAZ from profitable to be come losses, fortunately my DXO is hedging against it and I suffer a minor loss.  If I set my hard stop loss earlier I would have broken even.  XLF has ran up rather quickly and already reached its 50% retracement from the top of wave 3 of 5.  It is also at the low point of wave 1 of 5.

Financials

I have been follow financials lately since it has its own defined trend and it tends to lead the overall market.  Today we wouldn't want to be holding FAZ in our portofolios as it plunged around 40% today.  Although many are loading up the FAZ but I still think it can go down a little more.  It's currently around $60 a piece.

I was actually anticipating this huge sell off in FAZ sparked by this rally.  Below the blue oval indicates where I bought in FAZ put 80, and the purple is where I gave up when it lost half of its value.  However if I held on to it until today, I would have gotten a gain instead.

Let's review what went wrong, XLF is making lower lows each day and I kept the bleeding going until I gave up.  Notice if price is making daily lows everyday, I would be able to set a safe stop-loss point.  The desired locations are the blue arrows, with stop being previous low.

I personally think the market can head higher these few days so I am waiting for a lower entry on FAZ.

New low on XLE, XLV continues to break down

My only open position is shorting Canadian banking sector via HFD.TO, currently up 10% from Friday's close.

Health care sector all of a sudden breaking down completely as Obama announced new health plan.

Energy made a new low today, interesting to see other sectors coming down w/ the financials.  Crude was coming down from temporarily overbought territory

Financials

One we hit the daily 2)EMA, we will prepare for another downturn.

Financials had a nice run today, I am waiting to short it ... I was about to get FAZ puts but was too slow, o well.

My longs held up at the near support

However I have exit my position in EWZ as the chart seems to be the most broken of the 5 and I don't want that much risk going into the weekend.

Long's

These are my current "Long's" with stops ...

Financials

I want to show a very interesting relationship, the FAZ, is the triple inverse of the financial index $DJFN, for simplicity let me use the XLF, ETF that tracks the $SPF instead.

We see that in this period of 3 months, XLF had 4 significant tops.  The 3rd top is much lower than the previous two, however the FAZ bottoms are very close to one another.  And it seems to be quite risky to enter it once it is above $40...but gain is substantial if you are on the right side

Financials

Crude down big time

Crude Oil fund USO down over 8% today, my position in DXO was stopped out at the no-loss price ... I guess Obama has been promoting alternative energy so even when Energy is up while crude is down big time.

Sector Trends:

Material =

Energy +

Financials =

Industrial +

C. Staples +

Utilities +

Health Care +

C. Discretionary =

Dollar -

Agriculture -

Biotech +

Real Estate +

Crude -

Gold +

Bearish Leading Sectors

Financials, Industrial, Consumer Discretionary

Bullish Leading Sectors

Energy including crude, Agriculture, Utilities

Triple Leveraged Bearish Financial

A huge down day on this while the XLF was up by a fraction of this.  How can this deleveraging be avoided?

Energy Bull Trap

I mentioned that I have entered a small position in Energy and Health care on the 13th, I have exited both positions on 14th due to reversal.  Let's review if we could have prevent the trap.

We see that although the 15min charts showed bullishness on the 13th, however in the longer term chart, the 60min ones, it is actually still showing bearishness.

Sectors Leading the Markets Up:  Energy, Health Care, Utilities

Sectors Leading the Markets Down:  Financials, Consumer Staples, Industrials, Real Estate

Sectors Reversals?!

As the S&P500 consolidating, some sectors became leading the S&P back up.  These are consumer staples, energy, health care.  Financials & Real Estate had a good run up but were pushed back down afternoon.  I have entered a couple of small positions, bullish in energy & health care via ERX & RXL.

Agriculture DBA

It seems like it is running away from the S&P500 ...

Positions

Right now I have 7 positions opened:

Long:  EUR/USD

Short:  Real Estate, Financials, Energy, Material, Far East Region, Small Cap Index

Real Estate & Financials are the two that are strongly bearish .. 

3X Leveraged ETF's

Direxion Shares is offering a list of 3X leveraged ETF's

BGU/BGZ  Russell 1000 large cap

TNA/TZA  Russell 2000 small cap

FAS/FAZ  Russell 1000 financial

ERX/ERY Russell 1000 energy

DZK/DPK MSCI EAFE Index

EDC/EDZ MSCI Emerging Markets Index

TYH/TYP Russell 1000 Technology Index Index

http://www.direxionshares.com/etfs

Positions

Today I opened several positions, bearish via leveraged inverse ETF's of sectors/regions:

IWM, EFA, XLB.

Along with existing bearish leveraged positions:

IYR, XLE, XLF.

Long position on EUR/USD.

Sectors

The Real Estate index is bouncing around into a huge gain.

The Euro/USD is between its 50-62.8% retracement zone ...

The Energy and the Financials are up but relatively flat during the course of the session

Only 2 of the sectors I am following were bearish today, Health Care & Utilities.