31Mar2:00 pmEST

Betting on the Credit Card Thesis; Chess Moves

I went short MasterCard, MA, at $87.02 with a protective cover-stop above $93 on a closing basis. 

For a while now, I have been bearish on financials due to their underperformance and even the mighty credit card plays, despite how impressive their rallies have been on a multi-year basis.

But with chinks in the armor seen in credit card plays like AXP DFS of late, I am betting that the likes of MA will follow suit and head on lower.

On the weekly chart, below, note the clear bearish RSI divergence to price, making lower highs while price made new highs since January 2014. 



Of course, I am not shorting MA solely based on this divergence, given this bulls market's propensity to render such divergence null and void. However, taken with other evidence I believe there is more than enough to warrant a short trade into April. 

Visa is also a short setup if it loses its 100-day moving average. 


View from the Shoreline of S... Winners Stay Winners; Chess ...

 
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