US Stocks - My Stocks Investing

Financial ETF (XLF) – Good time to short!

Post author:Marubozu
Post published:May 7, 2010

The European debt crisis has triggered panic selling in the banks and financial stocks worldwide. I am entering a XLF SEP 15 PUT option to ride on the slide of the current financial sectors sell down.
XLF (Financial ETF) has broken the 50D MA support and heading towards the next immediate support of $14.723 (78.6% Fibonacci Retracement Level and also 200D MA support). If this support level is broken, a deeper correction will probably start in the financial sector.

JP Morgan Chase (JPM) – A Good Candidate to Short?

Post author:Marubozu
Post published:May 6, 2010

JPM has just broken 200D MA support and looks like a good short candidate in May. In addition, the cloud is still very dark in the financial sectors on top of the “Sell in May & Go Away” sentiment.

Things to watch:

Whether JPM can stay above 200D MA. If not, the next immediate support will be $40.923. If this 61.8% FR level support is broken too, JPM will be very bearish and starts the down trend.
If JPM bounces back from 200D and breaks the 50D MA resistance at about $44.00, the bull will be coming back.

I have entered my JPM SEP 43 PUT position and will be watching very closely these two levels.

Citigroup (C) – Testing 50D MA

Post author:Marubozu
Post published:May 6, 2010

US Financial stocks have been very bearish recently due to the debt concerns over PIGS (Portugal, Italy, Greece and Spain). This may present a good opportunity to buy some good financial stocks during this correction in May. Citigroup is one of the financial stocks for long term investing and I am waiting for the right entry point. Base on the chart, C is currently testing 50D MA. I am waiting to see whether C can stay above 200D MA support at $4.00 before deciding my entry point. If this 200D MA support is broken, $3.655 (61.8% Fibonacci Retracement Level) looks like a good entry point to start stock accumulation.