re: FAZ Financials here right at intraday lows (or very near).
Was looking at this anyway -- so will offer a few observations:
A break of XLF/FAS on vol at lows of day would be good for an short swing trade (we are there now or close to there...I would look to FAZ if it looks imminent that the market will fall apart on expanding vol - then FAZ would be really good to go.. Not sure yet -- see no signs of a break down here (except C looks terrible).
Looked at XLF and some of the Financial components --
XLF -- at 11.45 or thereabouts, potentially has another .20 downside (using July 20 as a gauge here) , which could give FAZ a nice lift.
BAC at $6.05 -- just above $6.03 low made earlier in day
C - Breaking down as I write this...looks ugly
WFC - Just above lows and just sitting there for now
MS - Same as JPM... MS looks to need to retake 12.81 to get any steam.. Right now not looking bad but still if it gets some ugly vol then FAZ could go.
GS at lows (or just broke it) acting like it will break a bit lower, but need a volume. GS can be very tricky as gauge for downside action - it can undercut its low on vol and then whipsaw right back up.... JPM/MS likely better gauges (and if BAC breaks & holds under $6)
AMX - At it lows -- looks iffy here
V -- Notbad looking at all....could be a nice hedge to a FAZ position especially if you can catch V weakening a bit later...
All that said, I would consider a scalp here especially if you see JPM/MS breaking down on some intraday vol. Right now its chancy, but worth tracking - this to me can still go either way (even though I think most of downside action is over (but I think we need to see how it goes in an hour after an attempted rally by indices... So right now, thinking FAZ may pull back a bit more for a better entry, then you may want to consider a relatively tight stop. A key to watch for is to see if JPM retest lows today and holds. I'm thinking it will weaken some and do that retest (giving FAZ a bit of short term lift up). Will need to see ugly action in JPM at its lows though I think for FAZ to get much more traction beyond that. Hope that helps.. Good luck, Mike
