Thursday, May 21, 2009

And you can take that to the bank.

Looks like the GM bet is holding out well so far. It closed at 1.92 today up 32.41%, and up to 2.14 in aftermarket trading. That would be a 100% gain so far.

Sooo..... since I was feeling a bit Extra Edgy today, I took a look at FAZ around lunch and bought some more at 5.38. I had a little time to watch it today, and thought about selling around 5.68 (the top!). But I took a look at C, WFC, and BAC as underlying indicators for XLF, as an underlying indicator for FAZ.

All three of those big banks are coming to the end of flags/pennants/wedges that they've been forming for the third time since the rally. They're either about to shoot way up again or collapse for a short time. Volume Flow and Advance/Decline on a daily chart do not look promising, so I'm holding out.

FAZ closed up at the end, and aftermarket had moved it up to 11.85. This happens to be a penny short of my resistance line created in my ThinkOrSwim chart. Again, I don't have much time to post charts right now, I'm sure the one above says too much already.

I'll be watching premarket action and then opening prices of XLF and FAZ to see if this wedge pattern is broken. We are at the tip of the pattern, so today should be do or die. I wonder if this is coincidence that it's happening on a Friday? I don't think I care to hold FAZ over the weekend... I'm already nervous about holding it overnight tonight.

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