The Financial sector has fared mighy well since the interum bottom on March 6th. Let’s see the unique 5-Swing (Quintuple!) Positive Momentum Divergence and the famous Cradle Trade that formed recently under price. Let’s start with the Positive Divergence. Generally, you identify a divergence by comparing one swing to another – such that price makes…
A lot of newer traders are drawn to double (and triple) leveraged ETFs including the inverse side, but being on the wrong side of a trade can be financially devastating quicker than most traders imagine possible. Let’s take a quick comparison of the recent moves in XLF (Financial SPDR ETF) and its double-leveraged inverse counterpart…
File this under “In Case You Missed It.” The XLF Financial SPDR ETF closed at all-time lows today, while the Dow Jones closed on its November 2008 closing low, which is now a mere 102 points away from shattering the November lows, which would be a six-year low in the Index. Let’s take a quick…
Since all eyes seem to be on the Financial Stocks, let’s take a brief look at the XLF Financial Sector SPDR to see if we can gather any clues from its technical structure. XLF Financial SPDR: (Click to Zoom-in on a larger than normal chart) One of the first things we notice is the power…
With a very volatile week behind us, let’s step back and take a look at the XLF Financial Sector from its 2007 peak to present. XLF Financial SPDR: The XLF actually topped in May 2007, five months ahead of the October 2007 stock market top which underscores the assumption that Financials lead the broader market. …
Often it can be helpful to analyze relative strength charts of key stocks or sectors to get hidden insights into possible future price moves or current structure. Analysts often use the ratio of the Consumer Discretionary Sector (XLY) to the Consumer Staples (XLP). Let’s see what this might mean and where this ratio is currently….
Financial stocks were hardest hit in Tuesday’s market decline and I wanted to highlight the XLF Financials ETF (which broke its November lows today, falling 16%), Wells Fargo (WFC) which fell 24% today, and CitiGroup C which declined 20% today. First, the broader XLF Financial ETF: I’ll take a quick view of each stock’s technical…
Let’s take a moment to look at the intraday action on Friday in the XLF (Financial Sector ETF) and then see how that played out on the daily chart structure – hint… we had a non-confirmation with the US Equity Indexes which you might want to view. XLF 5-min Chart: We began the day with…
We need to pay attention to what the Financial Sector is doing on its charts because it has a tendency to lead the broader market, and many eyes are focused on news from this sector. Let’s take a quick look at the Daily and Weekly charts of the XLF. XLF Weekly: A quick overview tells…
I sincerely hope you weren’t majorly short the Financial sector the last few days – if so, I hope your stops took you out before carnal and potentially devastating damage was done to your account. Let’s look at what went wrong (and right) so quickly. Let’s assume you heard the news of how Financial stocks…