All financials are reversing trend to show bullishness!
Look at the Direxion 3X ETF aka FAS, the fund is lagging behind most financial stocks.
Almost all other financial stocks other than BAC, JPM are reaching its May highs. On the other hand, the LEVERAGED effect of FAS caused it to lose value despite all the underlying going back up.
However, in a bullish trend, FAS gains will be compounded and it could actually go back to where it was near march which is $40.
The current price is $26.81, and that’s a 50% climb. Since it is leveraged 3 times, the underlying has to rise by 16.7%.
Not too hard.
Let’s see how this pans out for the TOP 10 companies if they were to rise by 16.7%
JPM – 47.84
BRK – 92
WFC – 35.5
BAC – 15
AXP – 54
V – 93.6
MS – 31
MET – 51.4
All these figures are realistic targets, so if you are like me bullish on Financials, FAS is a good trading tool to use too.
1 comment:
How these banks going up if nobody wants to buy a house? It's better to bet Manny Pacquiao in boxing than stay in the financials. Think about it. Be careful.....BAC @ 10.65, JPM @29.99 and WFC @22/SHARE.
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