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.

Practice Account

This is a recent screen shot of my practice trading account, some of you can probably tell which site it is from ... not bad performance eh?

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