*An expected bounce in the overall market
*Extremely negative sentiment for XLF
*A positive divergence between XLF price action and the 3-day RSI
Guess what, folks…sometimes this stuff actually works!
The example trade was intended as nothing more than a short-term speculation hoping for a “pop” in XLF. Figure 1 displays the current status of the trade (assuming the trader was willing to risk $500 on the trade) as I type.