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

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

Trades & Sector Leaders

Today I have entered several new bullish positions, on China, Health Care Sector, Biotech.

Market leaders are commodities, biotech & health care.

Market laggers are industrial & financials.

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.

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.

Positions Opened

I have been lazy in updating my blog, today I have opened 3 bearish small positions, with leveraged inverse ETF's.  (SRS, ERY, FAZ) ...