One major detail that stands out is the 30-31$ resistance. In order to continue its bullish run it must close above these levels.
Although this might be a tough task since we are in the late stages of the cycle. My focus in the next year will be this exact sector, since most banks will not be able to hit the same profit margins due to the inversion in the T....
all good things have to come to an end, but man o man. the banks are about to loose all resemblance of control. im a vix trader, so when i see the yield curve i instinctively see a commodity curve. when the front month risk is worth more than the back end risk ie gamma jamma. the perception to participants is to sell the front month buy the back month. in a...
The financial sector is well known as the lifeblood of an economy. Financials have dominated the markets over the past years with their uptrend.
If we take a look at the XLF, Financial Selected Sector SPDR Fund, for example, we can see an uptrend in this sector since the end of economic crises. Just in a 5y XLF is up more than 22%.
Note that the price movements...
XLF has failed its breakout and lost the 20 dma on heavy volume. Seems to be reacting to the expectation of more rate cuts which are not favorable for banks. Looks like it could sell off into the 200 dma which has some confluent fib zones and is at a price volume pivot.
Financials broke out of its recent range today, entered half position in $FAS and will enter the other half on tomorrow retrace if there is one.
If not, will look at how the price action plays out. More updates to follow.
Heres some interesting spots on chart. xlf been lagging. similar to iwm.. which looked to be backing out of similar resistance zones.
May pickup some puts to add to my rally for nothing hedge.. Keep waiting to hear why we're back up here. fed rate that never changed? trump deals that never get made? earnings revisions everywhere.. so much debt.. etc
XLF has reached to the final target zone of a bullish setup (posted in my Facebook page)
Now, with a double and a resistance zone, we can see some pullback (or even a strong bearish wave).
This can be a warning signal for stocks...
SPX also struggles to close in new records highs territory - Back below 2960 and generates a potential false break and a potential...
The Financial Select Sector SPDR is trading within t 1D Channel Up (RSI = 64.631, MACD = 0.090, Highs/Lows = 0.4050) and todays pull back is only a technical reaction to the RSI approaching 70.000 on 4H. Both the MA50 and MA200 are supporting which is a very bullish development. Our TP is 29.10.
** If you like our free content follow our profile...
What's going on in the financial Sector?
I like to watch the slower moving Morgan Stanley VS. XLF sector.
We are watching this for timing rotations into the financial sector.
XLF is dominated by BRK.B and JPM.
Not an easy call. Technically it is more probable XLF to break the upper trend line and resume the bullish trend. But this is end of cycle so the upside is limited in my view with the rates being sqeezed, FED balance sheet tightening.
us banks know theyll soon be going the way of european banks, with rates at 0 even negativefor an extended time. Central bank manipulation may boost loss making tech stocks, but financials going the way of the dinosaur