Preface to all sector posts: This weekend I’m organizing charts in a different way. I’ve picked from my existing portfolio of live short positions and have grouped favorite shorts in specific sectors. Here are the selections for this group, and as always, click on any image to get a bigger view. Hopefully the markups will speak for themselves.
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During the past year, or so, U.S. 2-Year Treasury Yields have shot up sharply, in comparison with 10-Year Yields, as shown on the following weekly price comparison chart and percentage comparison chart.
As I trust I have made clear, the financial sector is a favorite right now for shorting. This chart of the XLF is, based on over 30 years of staring at charts, one of the most exciting and enticing opportunities I have ever laid eyes on. The analog and breakdown have, thus far, been spot-on.
The massive financials analog continues to play out beautifully. We may see a little strength (or not) after all the recent weakness, but I think the die is cast. The financials, by way of XLF below, should ideally stay below 27.08 from here on out.
In spite of lifetime highs in most areas, the financials continue to look vulnerable. I mean, not everyone can be Netflix and Amazon, right? Anyway, the Analog From Hell is still utterly intact on the XLF:
Sheesh, what is with this market? Tuesday was awesome for me. Wednesday was absolutely horrible. And now today, Thursday, is going great. Could the market make up its mind? No, I’ll go one better. Have the market go down 2% daily, every day, until it is 0. That’ll suit me nicely. This up/down/up/down stuff is driving both the good guys (the bears) and the wicked evildoers (the bulls) out of their respective minds. It’s sick.
Anyway. I wanted to share a couple of unrelated short ideas (tied together by my clever post title). The first is the financial sector, XLF, which gapped down nicely where that circle is shown. This sector peaked back on January 29th, and its gap is at 27.72. I have so many bank stocks in my portfolio already, it would be redundant for me to short this one too, but it’s a cool chart.