here’s the updated 4 hour chart to the XLF recent short trade. although i wouldn’t be adding to any shorts at this point, as the recent price action and upside momentum is just too strong right now, i would point out that prices remain below the top of the resistance zone. however, anyone preferring tight stops might consider closing the trade on a solid move above that level.
although i’ve given back a nice chunk of gains on my swing short trades since friday, i’ve yet to be stopped out of any of those trades. the best individual stock patterns, long or short, are still favorable to trading the broad markets IMO. on a related note, here’s an article publish today about how the broad market etf’s tracking the S&P 500 are poised to exceed trades in the S&P 500 components (click here to view article).