5 large waves down have transpired since the last big rally in FAZ. The individual bank stocks are looking very weak. FAZ will be a big beneficiary when they roll over. At the very least I expect a move up to the prior 4th wave but it might go much further. I do expect the broader indices to peak and end their 2009 bull market some time in 2014.
Below $18.40 this model is bust but I think it will be lucky to throw under to $19 again. If you want to play it safe, wait until the top rail is broken out of before jumping in but I do expect to see gaps up occur in here so don't be shy: when it breaks out, do NOT think "the train has left the station without me". Think instead, "after a 5 year complete ass kicking, the financial sector shorts are about to get some pay back".
Friday, May 9, 2014
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