Chart Pattern Trader Loves FAZ

I added another newly discovered blog onto the Pig Pen blog roll, the Chart Pattern Trader.

On yesterday's video, the Chart Pattern Trader saw "bearish sign after bearish sign." He listed major overhead resistance, bearish divergences, trend breaks, bearish indicators and candle patters while summing up his negative position on the markets. Here is his brief rundown:

The reversals are panning out, with the right shoulder of a head and shoulders pattern looming over the S&P 500 chart. I explore more strategies and reversal signals on the charts. I bought all my shares back and added to my positions of SDS, QID, and FAZ. Look for the explosive sell off over the next two sessions. Remember, we will get word on the stress tests of the banks on Friday. Moreover, 25 % of the corporations on the S&P 500 are reporting this week.

For purposes of my portfolio, the Chart Pattern Trader analyzes FAZ starting at 20:25 and continues until 27:15, when he switches over briefly to looking at the chart of SKF, that old-school 2X-short financial ETF. If you're interested in the fate of FAZ, you should watch the video, but bottom line, he sees a likely break above the recent $13.26 peak, and a move significantly higher from that, with a short-term target of $25. I personally can't see holding my shares of FAZ straight through these healthy targets, but these forecasts may convince me to continue trading in and out of just the short side.