Let's FASe it, FAZ is cooked for now

Wells Fargo reported record profits and we are seeing a tremendous response as short covering and plain vanilla buying is rushing back into financials. A few days ago, I outlined my reasons not to be short financials, (see my post Why I would NOT be short Financials now) and we got some validation today. I am long UYG and BAC and will likely remain long a little bit longer.

I am also adding slightly to my energy exposure. I bought some VLO and RIG. I will be selectively adding to other positions today and will likely venture into a completely new sector, which should perform well, possibly as early as next week. I will do a bit more work and will post about it later.