XLF trade ideas
$XLF has some gaps to fill on the upsideKeeping eye on these gaps overhead on $XLF. The longer time frames are looking like a bullish reversal. Price is bouncing at the weekly linear regression channel and 200 ema as well.
XLF- Remain Bearish Banks always have it the worse and always have the hardest time breaking out or getting in control, not sure what banks are holding crypto at that which could of been a big mistake as 2020 and 2021 most banks opened up their crypto portfolios and bought it up as well as real estate and fed rates affect the banks the most as they need to swap money nightly with other banks at extremely high rates now. giving it strong aspect well hit my next short target.
XLF- Lower lows comingLower lows are coming, the trend is noticeably clear, and the economy is even more clear... it takes about 2 days or so to get the pump we need and then take profits breaking every stock down little by little... what's crazy is that were really going to get these cheap prices again we saw in 2020...
XLF- needs some heavy support hereBanks have been selling off since the beginning of mid-January and could have some more bleeding to do as well... also, we must take in the fact the banks are invested in to BTC & ETH and other crypto's as well and could be losing in the realm as well and smart money knows that, heavy heavy puts on the banks side... and we see citadel is handing them with the crypto as we saw Luna terra crash over the week. Low P:E ratios are about the only thing attractive in these bank stock prices but again they were the first to give out earnings and that's old news by now.
$XLF Support at $31$XLF has broken through and retracing near term support in the past few sessions. I don't see any meaningful support until $31.
I see similar damage and downside risk with $RUT and $SPX. Charts to come.
XLF has also ended wave 4Financial sector has also ended wave 4. Almost every chart show the end of wave 4. Some assets ended wave 3 in september, other in november or january. Market in now going to develop wave 5 UP
XLF Breaking Down Below Key SupportPrice has been in a downtrend since early this year but has consistently found support at the specified level. In the last 6 months, price has bounced off of that level 5 times and each bounce has resulted in substantial appreciations. Now, that support concords with a prespecified Fibonacci level of support. However, XLF seems to be breaking down; if it fails to hold this key level, we could see a substantial depreciation in the coming weeks and months. RSI has touched oversold levels (currently at 29) for the first time this year which also indicates an impending downtrend. And the Fed's hawkish sentiment(alerts to the possibility of a 50 basis point rate hike) further supports this bearish thesis for the financial sector and the broader market. Look to enter a short position with a stop loss at $35.5; PT#1 is $29-$30 where support will likely come in again.
Nice rounding top forming on the XLF.Weekly chart of the $XLF. Rounding top off as it battles the price shelf (VPVR on right). Likely to struggle on the way down to truly fall but will ultimately fail at the 72 to 89 EMA cloud (red cloud). Likely retesting $31 towards the end of this year.
Banks on the Edge?Banks look on the verge of long term breakdown out of broadening wedge pattern with massive monthly RSI divergence.
Weird candle formed after rejecting at the key 40 region!The XLF etf left behind an usual candlestick formation on daily charts with the most volume seen in over a week. It also highlights the lack of successful momentum above the 40 range once again. If the psychological 40 mark manages to cap near-term price-action then its likely to re-test 38.70 where some minor support and the 50-day lie. That's where I'd put capital to use even if price-action slips to the 37.70 area, I think intraday oversold signals can be bought. A clean loss of the 37.70 region, the top of a small gap and key 50% retracement level, and its game over for bulls!!
If bulls can clear the 40 handle, however, then 41.70 should be tested relatively quickly above which could expose 45 then possibly 50. That said, if 41.20/70 provides resistance then the XLF will probably range like it has either side of 40.
Financials in good formMost of the banks trade at market cap of 50-70% of their actual working capital. They have strong balance sheets with lots of cash. And they will benefit from turning overnight repos with 0,05% to bonds with 3% yield. 30 bln in profits out of thin air. Just have to overcome the panic at some point
Bull market $xlf We can't never call what's going to happen only the pressure points we can lead to and below ive featured some point we could possibly hit for big money on the option chain.
$xlf deal or no deal Ima Just say what Cathy Woods says, the future is unforeseen lol, but banks tend to do well it's just i have a feeling they're stuck with some gaps on the housing industry and interest rates and that can really crash all these banks. Just because you beat the estimated earnings or have solid earnings does not mean the price action will reflect... There's too much ignorant money in the market as of now and it's starting to show.
$XLF pinching for highs $XLF usually goes long when the 30,50,100 sma all cross over like shown. would be looking to go long here to the $43 range like anything inflation brings soaring prices... so, for example, you go to Walmart bread is more expensive. well, you go to the stock market bank stocks are going to be more expensive... simple logic use your head traders. Do not count banks out at all these are the ones going to bank off these interest rates and all other everything lol
$XLF is long from here All i can say is the guys at the banks are making money i strongly suggest adding to position anything under $37 as a stock buyer and anything around 36.79 as an option purchaser into 2023.
$XLF little downside than longBanks always get hit first as they always provide us with the initial QTRLY earnings... some are good and some are bad but the P:E ratios on most are solid like CITI bank or Goldman Sachs, JP Morgan, Chubb, Wells Fargo and this is what moves XLF... now i could be wrong here but with prices going up banks taking large oil and commodity positions i feel the behind-the-scenes money is larger than we think, iv'e always seen banks sold off and continue to reach new highs... The perfect example is going to be Citi bank and well, we all saw Bank Of 'America and unfortunately i missed that one long. The Market needs to hold this 365 ma believe it or not were in a yearly retest and things can go sour from here worse than before as we approach the 2020 trendline before the market crash.
RectangleXLF has broken has fallen through the bottom trendline, then price broke back through and is in the rectangle again.
The Select Sector SPDR Trust - The Financial Select Sector SPDR Fund is an exchange traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. It invests in public equity markets of the
United States. The fund invests in stocks of companies operating across financials sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the Financial Select Sector Index and the S&P 500 Index, by using full replication technique. The Select Sector SPDR Trust - The Financial Select Sector SPDR Fund was formed on December 16, 1998 and is domiciled in the United States.
The investment seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts ("REITs"); consumer finance; and thrifts and mortgage finance. The fund is non-diversified. Benchmark: S&P Financial Select Sector TR USD.
No recommendation
$XLF tons of overhead supply ; will the gaps fill?Financials on full display going into earnings . Will those GAPS fill? Keep them on your radar.
#XLF #JPM #C #BAC
Interest Rates continue to rise on 30 year home mortgages and the federal interest rates consumers begin feeling the pain of being both pushed out of the market and every direction they turn.
In most cases higher interest rates help the banks and some could say, “higher rates drive up prices, which increase companies earnings and consumer price index ( CPI );” however, I think many are overlapping the current with past recessions. In most cases that may work – but this time isn’t like any time of our past. The amount of headwinds on the global fronts and out of control printing of debt holistically.
In any case, I am cautious on banks with all the segments of their lives being impacted with oil , shipping, economic contraction, rising rates, etc. not to mention rising wages being outpaced by inflation and poverty increase by x-hundreds of thousands per month.
Tons of overhead supply that could be potential opportunities for entries on rejection. WILL THE GAPS FILL?
** What happens when households cannot afford to acquire loans and it’s too late for them to refinance their homes… just food for thought.
