BOUGHT +100 FAZ @14.29/SOLD -100 FAZ @13.88

I placed a stop buy this morning for FAZ just above its intraday resistance along with a stop just below its intraday low. The entry triggered before lunch (11:44) but then I got stopped out at 12:43pm. This is a short term play as FAZ was hit hard today with WFC's "unexpected" profit. But I noticed WFC was unable to sustain its opening high and continued to drift lower all morning while S&P 500 is hanging below 850. I interpreted that as a divergence and entered FAZ.

However, FAZ has tanked further and its trading at 12.82 as I write this. Good that I tacked on a hard stop with my order.

[caption id="attachment_1230" align="aligncenter" width="500" caption="3X Bear Financials"]3X Bear Financials[/caption]

[caption id="attachment_1231" align="aligncenter" width="500" caption="Wells Fargo vs. S&P 500"]Wells Fargo vs. S&P 500[/caption]

Posted 09 April 2009 in stocks.