Category Financials

Entries 19 Total

$GS . ‘W’ face resistance

Feb 2, ’12 11:59 AM

It has been challenging to get some wins off short position with this market that still refuse to retrace.

Here’s another setup that I am looking to short.

We can see from the chart that :

1. A ‘W’ is forming on $GS . However, it is facing resistance from the Chikou Span way back from November 2011.

2. At this moment, this is not a good time to establish a long position as it has run up by so much. We can see from the RSI that it is reaching ‘overbought’ situation and the Force Index has shown that it is in bullish territories for quite some time.

 

Next, we can see from the Weekly chart that $GS is still trading below the kumo; a sign that it is still bearish.

We can also see that the Chikou Span is about to hit the price level ‘forming the W’ follow by the Tenkan sen and Kijun sen on the Weekly Chart.

I will look for a short vertical call spread for $GS and hopefully, it goes as planned.

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$XLF : Great setup for a short

Jan 18, ’12 2:00 PM

With news of JP Morgan making a loss last quarter and now Morgan Stanley having a cap on immediate cash bonus, XLF is clearly being setup for a great short.

Let’s review the chart.

1. We can see that on the Ichimoku Daily Chart for XLF that it is bumping into the resistance level at $14.

2. While the Daily Chart shows that XLF is in bullish territory, the last 3 candles is not showing great strength. The candles are suggesting that XLF may turn from here.

On the Ichimoku Weekly Chart, the setup is clearer.

1. Like the Daily Chart, we can see that XLF is hitting the resistance at $14

2. The key difference is XLF is still bearish on the Weekly.

3. In the coming 2 weeks, XLF will be slamming into the kumo resistance and the flat kumo top is suggesting that XLF has a higher chance of consolidating below $14.

I will be establish a SHORT CALL spread on XLF.

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Citigroup Inc ($C) : Watch for kumo breakout

Jul 7, ’11 12:21 PM

Citigroup (C), has rallied from a low of $37 and has gap up in the last few days.

Currently, it is trading within the kumo and is in a trendless state.

A break above the kumo will give us a bullish confirmation.

We already has a weak bullish signal from its Tenkan sen – Kijun sen cross below the kumo.

Given the strength of its run over the one month, my bias is bullish and I think it will breakout of the kumo within the next 2 weeks.

 

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