An Interesting Break In FAS
Tim Knight | Sep 10, 2014 12:51AM ET
Financials are a peculiar sector, because one didn’t have to nail the March 2009 bottom in order to get a bargain. Indeed, one could have waited about two and a half years – – until October 2011 – – to get incredibly cheap prices. Since then, though, they’ve been marching ever-higher, just like everything else.
However, I noticed an interesting break in the Direxion Daily Financial Bull 3X Shares (ARCA:FAS) trendline (FAS being the triple-bullish leveraged ETF for financial stocks). Regardez, s’il-vous-plaît………
Looking closer, you can see that when the trendline was first violated, the price started behaving “messily” vis a vis the trendline (e.g. moving above and beneath it). The second clear violation, also marked by an arrow, made things cleaner, because we fell away sharply, did a hearty retrace, but never got back to the line’s other side, and resumed the fall.
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