US Bank Stress Test Announcement Post Mortem

Posted by Kris | Saturday, April 25, 2009 | | 0 comments »

Continuing from last night. After a trickle of info from the FEDs on the stress test methodology, the XLF start plunging to ~USD10.74. After the initial shell shock, the short killers came in to push up XLF to a high of USD11.15. can really see the FAZ (3x short leverage financial ETF) get screwed big time reaching a low of 7.83 before closing down -0.65 at USD8.26.

Before the last 10 mins, the XLF get dumped again to fall from its uptrend line. Those 2 blue circles denotes the plunging panic of XLF. The financials were strongly supported last night. If a panic , ensure DJIA easily will lose few hundred point in a matter of minutes, something the FEDs want to avoid at all cost.

What will happened on Monday when stocks reopened?