I would keep holding it if I were you, but use a trailing stop. 1) What are the chances of the XLF re-visiting and testing old lows? 2) What are the chances that the top 3 holdings in the XLF will re-visit the old lows? 3) WFC, JPM and BAC make up about 20% of the XLF. JPM is scraping up against a certain short term trend line. WFC and BAC are through those trend lines. Just looking at the charts, common sense tells you that they should visit the lows. 4) Holding over the weekend in an etf like this is never a good idea. JPM might bounce off that line. Its your choice to make...I say that once the trend line is broken on JPM then it will be a matter of days before the FAZ doubles or triples...
I can see where 60 is a point of resistance and it would be a natural sell at that level. Looking at the chart, you see one tower. Will there be another tower that will make this formation looking like a head and shoulders? The next tower may be taller then the last which is not unusual. Obama is just talk now. Obama is looking at the dieing patient and saying "you will be ok". Is it really true that the patient will be ok? Eventually the talk will wear away and what do you have left? A dieing patient...
What kind of a "risk/reward" are you setting up for yourself when you buy the FAZ at an average of $54.29, looking for a 10% gain to $60 and not using any stops? Answer: $35.40 That's a great risk/reward you got there.
weird action today the FAZ is flat even though financials are getting beaten up over MS earnings. EDIT: now down almost 4%????? I don't know what's going on, there must be no buyers for some reason. XLF is off 2%