Backing out the fact that the interest rate backdrop will always be in play with the Financials, taking the chart of XLF at face value we have a breakout in progress. It is not official (i.e. it could well be a whipsaw) but if it clears and holds this resistance zone XLF would be yet another sector targeting its January highs. Informally, the 28 area … Continue reading NFTRH+; A Sector Breaking Above key Resistance
Public readers, please don’t construe what I write publicly as some kind of reco to short (I have been short XLF for portfolio balance and a contrary interest rate view). When we do NFTRH updates we talk about setups and parameters. They are key. For the sake of a public post the information is that XLF has ticked a lower low to set a downtrend … Continue reading A Key Sector Joins the Lower Low Sweepstakes
I have been increasingly bearish on long-term Treasury bonds due to developing sentiment and Commitments of Traders issues implying a contrary bear play and also due to the fact that T bonds have popped to our original upside targets (when taking a contrarian trade in the opposite direction last December), which were roughly to the declining SMA 200. But this post is about the Financials… … Continue reading Financials Short Adventure Ends
This NFTRH+ update is emailed to the entire subscriber base (an earlier one was stock-specific and sent only to subscribers who’ve opted in for email delivery) because it is macro related (interest rates and by extension, tactical portfolio adjustments). A reminder that all NFTRH+ updates are available to all subscribers directly at the website as well. Last week we had our first short setup update … Continue reading NFTRH+; Updating Banks/Financials Short Setups
On the other side of the equation from the earlier GDX update, we have the bearish Financials ETF XLF, losing important support today. MACD, RSI and AROON are all down to boot.