XLF trade ideas
XLFLooks like more room ahead. But take profits on short term calls as it challenges the longer term trend line.
ABC BullishTop 10 Holdings
BRK.B - Berkshire Hathaway Inc Class B14.21%
JPM - JPMorgan Chase & Co10.99%
BAC - Bank of America Corp7.25%
C - Citigroup Inc3.89%
WFC - Wells Fargo & Co3.38%
BLK - BlackRock Inc3.31%
SPGI - S&P Global Inc3.15%
AXP - American Express Co2.30%
GS - Goldman Sachs Group Inc2.29%
CME - CME Group Inc Class A2.22%
FInancial sector should still have roomThis is not a good sign for TLT. The chance for S1 decreased meaningfully. Long financials while be prepared for S2 and S3.
XLF daily - a swing trade candidateXLF had a double breakout last Friday (Aug 7 2020) with above average volume . RSI is strong but MACD is negative for now. The plan is to buy it around this level with a stop around $24. Expect to hold it for about a month with $3 to $7 gain per share if it goes well.
$XLF Financial Select Sector SPRD Fund ETFFinancial Sector ETF. Break of 24.50 opens 26.40 and even 28.50 targets. Break below 24.00 on the daily will trigger a stop loss.
XLF Gap Fill?FA makes no sense, but price action shows XLF wants to fill the gap. Volume better step in or this is going to make an ugle negative divergence with the RSI.
XLF members underperform. The Financial Select Sector SPDR Fund (XLF) has drastically underperformed the broad market since the COVID-19 March lows (second to Energy XLE). Yesterday XLF gapped up closing at 2433.50 +0.70% whilst holding above its medium-term moving averages on the Daily time frame. During this morning's U.S. session we are seeing weakness amongst the XLF members.
Here are the top 10 XLF drivers and their performance at the time of writing.
Berkshire Hathaway Inc. -0.17%
JP Morgan Chase & Co. -0.1%
Bank of America Corp. +0.04%
Citi Group Inc. -0.66%
Wells Fargo & Co. -0.49%
BlackRock Inc -1.18%
S&P Global Inc +0.04%
Goldman Sachs Group Inc +0.09%
American Express Co -0.63%
Marsh & McLennan Cos Inc -0.62%
Although the fundamentals are not looking great, from a technical standpoint, we are now at a crossroad (1) where overhead supply is dominating today's performance. What happens at (1) will most likely determine the direction for the medium term. In order for the bulls to have the upper hand they will need to overcome twin resistance at (1), sloping trendline and 50% fib retracement, taken from the February highs and the March lows of this year. A break below the black diagonal support line would trigger further downside pressure.
Potential (LONG) Pattern XLFThis is not an investment advice.
Trade at your own risk.
Do not trade money you can't afford to lose.
XLF closed nicely above VWAP from recent highs $30 comingSecond innings of upside starting. Looking very good with limited down side and more upside. $26 and moves on to $30 targets
Banks setting up for another major leg downWhile in the short term it looks like XLF could rally back up to 26-27 if price is unable to significantly get above that level another large leg down in XLF in likely. Breakout above or to the right of the green box would invalidate this. The current bear market rally could last until the end of the year.
