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Direxion Daily Financial Bull 3X ETF Message Board

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  • nullenvoid20 nullenvoid20 Oct 19, 2009 10:42 PM Flag

    And today's chart...

    hammond, doesn't the potential island reversal on fas and xlf bother you? the island being last wed. and thursday.

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    • Heck yeah. The whole thing is looking rough. That's why I am lightening up and positioning for day trading as opposed to swing trades.

      RIFIN hit 823 and my target from last April/May was 825. I thought FAS would be over 100 when that happened but that was not to be the case.

      I am still long term bullish but I think we will probably head back and test the low 700's in RIFIN before a base can be built that will sustain an eventual move to over 1000 in the RIFIN and over 1300 in the S&P. I see no way that we just head there unabated.

    • carpediem0 Oct 20, 2009 1:28 AM Flag

      it is more of a potential island reversal still. typically, confirmation comes with a solid down day putting that gap close out of question for the short term. that hasn't happened yet and it is possible the gap gets closed tomorrow if financials join the fun - thus far, they have not been in much of a partying mood.

    • As far as the island reversal...

      I do not see an island reversal in XLF & FAS for two reasons primarily:

      1. The gap seen in XLF is comprised by and limited almost exclusively to the following three stocks: BAC, GS, and WFC... Look at thier charts and you will see this. All three look bottomed to me, with in my opinion, GS heading back up now, BAC possibly at worst moving sideways, and WFC all about earnings...

      2. The RIFIN which directly corresponds to FAS has no island... This discounts if not completely negates not only the validity of the FAS island painted but as well the potential reversal of the sector as a whole due to a potential island reversal pattern...

      In my opinion IF the sector was potentially reversing based upon this pattern you would see it in more than a few stocks and as well you would see it in RIFIN. Further -it would be confirmed via primarily price action in BAC, GS, and WFC...

      In my opinion this island reversal scenario is highly unlikely...

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