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Eric Kelly
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Trader and money manager, graduate of the University of Michigan with dual degrees in Finance and Accounting. I have with interest in all global markets, assets, and trading styles. The analysis and opinions conveyed in my articles are my own, not that of my employer.
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  • Technical Analysis of FAS

    FAS is a triple leverage ETF, the fund seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000 Financial Services index. As a long-term investment vehicle, this ETF is not great due to re balancing erosion. For short-term traders, this product can offer exposure to a market leading sector.

    FAS has experienced the same downside pressure as most other tradable equities in the last two weeks. The financial sector is one of the weakest performers so far ytd, FAS recently crossed over to a negative return.

    Looking at the chart below you should take note of the broken triangle pattern and the 200 day SMA (green line). The price is resting right on the 200 SMA as of todays close, 26.41. This will be a very interesting stock to watch tomorrow. If the overall market and FAS make a clean break lower it may be a good short opportunity. I will be watching which way this name bounces, as I have successfully used FAS in swing-trading strategies before.

     

    xlf, financial sector, hedgefundlive, decline, triangle, trade, fasXLF on the 200 day SMA
     
     
    Tags: FAS, XLF
    May 23 5:47 PM | Link | Comment!
  • Trade Alert: NYX
     
     
    NYX, $NYX, technical, fundamental, stock, trade, volume, breakout, merger tal34.00 support level is big for NYX

     

     

     

     

     

     

     

     

     

     

    NYX has been beaten up lately, however it found great support above 34.00. This stock is a candidate to buy here and hold for several days. The company is healthy and it has a viable business (stocks will continue to trade). There has been some merger news surrounding the stock lately and that is the reason for the quick decline.

    On a technical note, the 34.00 level is huge, if the price breaks below then there will be downside pressure. NYX is still above the 200 day moving average. The volume has also picked up in this stock over the last few months.

    NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. — the Paris, Amsterdam, Brussels, and Lisbon stock exchanges, as well as the NYSE Liffe derivatives markets in London, Paris, Amsterdam, Brussels, and Lisbon.



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Tags: NYX
    May 19 11:00 AM | Link | Comment!
  • Forex: EUR/USD respecting long-term Fib levels
    EURUSD, FXE, currency, forex, hedgefundlive, trading, stocks, bonds, technical levels, fibanocci, profitEUR/USD 15min chart with fib levels.

     

     

     

     

     

     

     

     

     

    The EURUSD has begun to show weakness, and been moving lower lately. Aside from the obvious fundamental weaknesses, it is technically broken. In the chart:

    Green 23.6 fib line: $1.4212 (dates: low point 6-6-10, high point 5-4-11)

    Orange 38.2 fib line: $1.4144  (dates: low point 1-9-11, high point 5-4-11)

    The price action has been finding support and resistance on both of these levels. My feeling is that the EURUSD has further to fall, already break support zones multiple times. Key support levels will be 1.4050 and 1.4000, if both are broken strongly look for a larger decline. My level of key support will 1.3400, the reasoning behind this is explained in my previous blog. It has to do with the price of Oil and the AUDUSD.



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Tags: FXE, FXA, USO, SPY
    May 17 9:45 AM | Link | Comment!
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