FAS, Financials and the MS Upgrade
May 30, 2009
– Comments (10) |
RELATED TICKERS: FAS
, FAZ
, XLF
Friday 5/29/2009 the market struggled 'till the last hour ... MS got upgraded ... that's what happened. I agree with the upgrade and the upgrade thinking ... the financial stocks were driven to ridiculously low valuations, sooner, or later, the BEARS, and the SHORTS, were going to overstay their welcome and should have expected improving fundamentals, outlooks, and stock prices, etc ... to result in "upgrades". Upgrades usualy result in increasing stock prices and can lift not only the target stock, but its brethren also. Soooo, it looks like a short covering race that ran out of time at the four O'clock bell ... but appears to be struggling in the after market. As of the last report, MS is a FAS holding.
All too often, I see short positions, one of the "fundamentals" I monitor, that are increasing. even as the target stock's price is increasing ... DUH! I deem this is BULLISH, as these "borrowed" shares" are going to get called back by their owners. Actually, that deserves another DUH!. The fundamentals are increasing, the stock price is increasing .. instead of covering your shorts ... the evidence shows you borrow MORE stock you don't own, to short, and the MARKET absorbs every one of those shares and the stock price keeps climbing. This is GREAT for FAS and Bad for FAZ.
Hint 101: The market absorbing all those additional shares you're shorting and the increasing stock prices are TWO CLUES your Bearish calls are WRONG. At what point, the point you MR JOE SHORT-SELLER do not seem to get, do the people you're BORROWING the shares from CUT you OFF and DEMAND the borrowed shares back?
Mr. Joe Shortseller ... you should expect MORE upgrades; and, if you're lucky, Mr Joe Shortseller ... MS ( MS is held in FAS ) only goes to $35 ... and if you're not ... $50 plus ... June's upon us ... barbecue time. A Bears and shorts barbecue ... it's about time!
** Direxion Daily Financial Bull 3X Shrs (FAS)
10.00 +0.53 5.60% Volume: 171,155,738 After Hours: 9.89 -0.11/-1.10% Vol. 1.40 Mil
FAS Charts: 10 day/ 15 minute ( 5/15/2009 - 5/29/2009 )
Moving Average Price Compare
Yesterday, FAS closed above its 13 minute moving average. This is generally considered to an indication of a bullish trend.
Moving Averages -- No current signals
Bollinger Bands
FAS is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.
Stochastics
The Stochastic Oscillator is registering a bullish signal as the %K line is above the %D; however the oscillator has moved above the critical value of 80 and is now overbought. The overbought condition means that the upwards momentum experienced in this stock is not sustainable.
On Balance Volume
The On Balance Volume indicator (OBV) presently offers a bullish signal. This is because the slope of the indicator is positive and shows that there is considerable buying interest.
Price Channel
FAS is trading above its 5 minute price channel. This means that the stock is trading at a new high for the period and the price channel will update to reflect that.
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