FAS (3x long financials etf) will be added as an official short trade here on this XLF bounce following the recent breakdown & backtest of the primary uptrend line. As this will most likely be a multi-month swing trade, FAS is my preferred proxy for shorting the financials at this time due to the added benefit of price decay from the 3x leverage.
I had mentioned personally establishing a starter short position in FAS back on May 18th, which is still profitable by about 6% (as of yesterday’s close) and I am taking advantage of today’s bounce in order add to that position. The 23ish area on XLF is the current final target although that is likely to be extended. Suggested stops on a close above the recent highs in XLF.