If there's one conclusion I drew from my chart-gazing last night, it was that the financials are completely, totally, and stupidly overbought. They have gone up hundreds of percent based on vapors and printing presses. This rise in financials is not sustainable.
In my IRA I sold off six finance positions which had gains of about 70% over the past week. At the same time, I decided (sorry, I couldn't help myself) to give FAZ another go, since I felt that was the best way to take advantage of what I felt was an imminent softening. I bought 2,000 FAZ @ 24.63. This is not a technical analysis play. The chart isn't really useful to me from a technical standpoint. This is merely a short-term vehicle for profiting from what the other financial charts are telling me, which is that the soaring financials will lose their loft.
