Revenge of the FASholes

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Financials are a peculiar sector, because one didn’t have to nail the March 2009 bottom in order to get a bargain. Indeed, one could have waited about two and a half years – – until October 2011 – – to get incredibly cheap prices. Since then, though, they’ve been marching ever-higher, just like everything else.

However, I noticed an interesting break in the FAS trendline (FAS being the triple-bullish leveraged ETF for financial stocks). Regardez, s’il-vous-plaît………


Looking closer, you can see that when the trendline was first violated, the price started behaving “messily” vis a vis the trendline (e.g. moving above and beneath it). The second clear violation, also marked by an arrow, made things cleaner, because we fell away sharply, did a hearty retrace, but never got back to the line’s other side, and resumed the fall.