The third pattern in the market that Jim Cramer told viewers told viewers of Mad Money about Tuesday night was the financial tech trade. Anytime Citigroup (C) or JP Morgan Chase (JPM) report news, good or bad, investors sell the banks and instead, snap up shares of fin techs like PayPal (PYPL) and Square (SQ) .
We last looked at PYPL on August 14 and wrote that, "PYPL is still in a major uptrend and we have a higher price target on the weekly Point and Figure chart, but in the short run prices are extended and we are likely to see a period of sideways consolidation before renewed gain. Maintain longs and raise stops to a close below $180."
Prices have indeed traded sideways the past two months but broke below $180 and should have stopped you out. Let's check out the charts of PYPL again.