FAZ trade ideas
Potential position for October - LONG FAZOn a TA standpoint, it appears that we had an all time low on September 8 2016. Since then, we are having higher lows within some kind of triangle with good resistance at 33.11.
Slowstoch or RSI are not even close of indicating any direction as to what direction one should take this trade.
But I guess this post is more fundamentals based positioning than a TA one and relates to the upcoming October month and perhaps even further. Here are some reason why:
1- New Stress tests requirements that could force large financials institutions to raise capital requirements by 3 to 4 percent
2- Banks like Well FArgo and Deutche bank making headline could induce stress to investors with regards to Financials and this could lead to selloffs in financials related stocks
3- Low interest rates environment which put pressure on financials
4- Fintechs
5- Banks laying off employees in order to maintain revenues and dividends. (which proves that they are having difficulties to generate revenues)
6- US election and Trump candidacy could add more volatility to the market.
7- October is historically a volatile month.
Well one could make the point that all of the above is probably priced in the stocks already which I could agree. My opinion is that if it is the case, then I believe it acts as a lid to financials stock going higher because all of the above is very bearish . Therefor, that could reduce our risks by being short Financials. One has to take into account that all indexes are at all time highs, this is really a massive resistance upward which again reduce risk of a new rally short-term.
S&P 500 0.51% FORWARD P/E RATIOS:* FINANCIALS: 12.2 as of today.
This idea would not be targeted for an intraday trader but more for someone wanting to hold for days.
Bought FAZ -2.45% at 31.50 $ last Friday.
Your comments are welcome
my FAZ positionwith the current state of the financial system, Deutsche bank especially... I feel there should be a spike soon
FAZ shortJust see this nice short setup on FAZ guys. It could easily go south but dont jump on it too early. rather wait for good entry point, as always. GL
FAZ is tanking, safe opportunity to jump on the bandwagonI was long on FAZ... until the only possible support (which I drew in green) broke. RSI is now testing that green line, and will probably...
1) show uniformity (if you don't know what this is, check out my account info)
or
2) hit resistance than bounce below
either way, FAZ should be shorted.
Not to mention... the RSI is hitting the red trendline. I know the trendline has only been developing for about 2 months but since the price action is so well defined, it's safe to take the RSI signal. Remember, anytime you use an RSI trendline that is not that well developed, there's more risk, but also much more potential reward since less people have figured out this market insight.
FAZ finally showing support on daily RSIIn late 2015 the an RSI downtrend line was broken. Where it was broken is now considered support so I drew a horizontal support line at the support. After months, it has finally reached this support. Great buy, and stock will continue to bounce off this support in the future. This is the first bounce, I would get in this one opportunity because the first several bounces are the strongest since people have not yet detected this insight. If the trend line breaks, which the majority are suspecting, I would sell short, because that means the current down trend from early 2016 is dominating the higher degree up trend. I think a lot of people will be short squeezed by this support though. I would sell anywhere from 50 to 53.
Defined risk - Speculative trade. Mean reversion due.Buy Vertical PUT Option spread on FAZ ATM ($55) 3 mth expiration to close at $40.
I have entered this as LONG - that is obviously referring to the market going long facilitating this trade which is SHORT on the FAZ 3 x ETF..
FAZ Short Term LongWith the SM in retreat, maybe for a few more days, FAZ has broken out of the descending wedge trend line. How far will it climb? There are a few potential resistance lines drawn. With the Apr 17 FAZ $13 calls, it does have the potential to get ITM real quick and potentially hit $15.
FAZ - Financial BearSelloff is getting exhausted here, support getting strentgh and momentum. Target 26.00, might have another pull back to 23.50 before.
Faz - Resistance brokenW in completion with bolling bands breached and descending top resistance broken plus double bottom. Strong case here!!
Triple bottom reversal + Gap fillLet's see if this one behave that way
Triple bottom reversal + Gap fill
