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.

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.

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.

On the Ichimoku Daily Chart, we can see that BAC has breakout of its kumo resistance and is challenging resistance form at the $13 region.

However, the kumo breakout lacks volume when you compared it to its October fall.

A closer look at the Ichimoku Weekly Chart sheds more light.

We can see clearly that BAC has hardly traded above the kumo on the Weekly Chart. This suggest a very weak bullish case.

It’s price level is also fast approaching the trendline resistance at around $13.50

Not a very bullish case in my opinion, given the lack of volume and the possible resistance from the Weekly Chart.

However, the price reverse and close off on the low at 137. Volume is also very low for the day.

GS price is unlikely to go up much until the hearing is completed.

If the reversal plays out, we should have a target of $131 (it’s recent low). Any more bad news (eg. more lawsuits) may see it break the recent low.

Likewise, a confirmed settlement with SEC can revive its price movement upwards.