FAS bullish leveraged EFT on the financial sector

FAS is one of the Direxion leveraged ETFs focused on the financial sector. As can be seen on

the 15 minute the price action has had increasing volatility in the past month. Increasing

volatility is the hallmark of the megaphone pattern ( a megaphone is a cone like hand held

plastic device used in the old days before bullhorns and other things to amplify voice for

cheers). FAS may have increasing volatility because of federal actions related to rate hikes,

some bank failures and the banking industry adjusting to the " new normal" as higher rates

become increasingly integrated into the financial system while still remaining viligent

regarding a recession and its own set of complications.

To play a megaphone traders will typically set a plan to buy on the lower support trendline

hold for a short period and then sell at the upper resistance trendline. I will open a long

trade on FAS given that it is presently near to support making for a suitable risk to reward

ratio if putting a stop loss immediately below the support trendline.