XLF trade ideas
XLF divergence in price movementPrice movement does not agree with the chart. Its going to be difficult to create new highs with no volume or strength.
Price keeps moving up yet most momentum oscillators have just shown a breakdown in price.
Clear out the noise in your head from Syria and the Taper; and focus on what's happening in the market: $TNX. I personally believe there is no retest of market highs. Not with soaring bond prices. Oh and by the way, keep on the look out for the debt ceiling. That's important too since it's coming up faster than you think.
SP Financial XLF Oversold 8/13/13A Hammer candlestick in an overbought condition in the slow-stoch. Its bouncing off of support @ 20.25. A Fed board member that can't vote came in to save the day and told what the market wanted to hear, and perhaps especially what financials wanted to hear as they were all in the red before 11:00 am.
I think we'll move up through resistance @ ~21.00. I am setting up a stop loss @ ~20.25. This move will be confirmed with a close above 20.44 with higher volume.
XLF: Fins Encounter Major Resistance Confluence 20-21XLF: Fins at confluence of Rising Channel Resistance and Andrews Pitchfork Median Line resistance, cyclical ABCD 100% projection, and Bearish Deep Crab PRZ.
XLFRSI divergence, top of a channel. Not a great place to put on new longs for another other than a trade
Bearish island reversal look in financials highlighted in red. So in the final hour... Looks like bearish island reversal pattern in $XLF / Financials.
Short Financials XLF versus Long Utilties XLUNote the massive divergence of 20% in the spread between the performance of Utility Stocks (lagging) and Financial Stocks (leading) just since the beginning of the year.
This spread will likely close and provide an excellent profit opportunity for long/short traders who specialize in arbitraging the difference in various sectors.
Whenever one market keeps its momentum long past the time a related market loses its momentum and succumbs to selling pressure, once the following market breaks, it often catches up quickly.
Note the XLF up in the stratosphere while the XLU is down in the ground. Although the components of the XLF are vastly different from inception, they still represent a vast cross section (even Berkshire Hathaway has a decent position in XLF) of financial firms.
Risk 3% and target a 10% gain over the next 30 days. Risk is defined as the loss on holding equal dollar positions long and short. If you have $10,000 in long positions, 3% of $10,000 is $300. Target return is $1000 per $10,000 on one side of the market.
Tim 12:04AM Wednesday EST, June 5, 2013
