XLF trade ideas
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
$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 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.
Gamestop and the XLFWell. Interesting theory. What if the rounding top happening with the $XLF will precipitate $GME to the moon? Or visa versa?
An outside event that causes a desperate need for capital could cause hedge funds to liquidate short positions. Or perhaps a reversal from the feds to QE from QT because we're at risk of a recession, signaling cheap capital is coming and causing the demand to ratchet up the price.
No opinion; just thought it was an interesting correlation.
XLF (Financial Sector ETF) - Support Bounce Hammer Candle - 1DXLF (SPDR Financial Sector ETF) price has bounced up from 0.618 fibonacci support on the daily chart.
Entry (long): $37.53
Take Profit +3% (exit): $38.66
Stop Loss -1.5% (exit): $36.95
Note: Many Finance related stocks have a similar pattern on either the Daily or 4-Hour charts. Could see an industry-wide bounce up if fibonacci support levels hold this month.
-BAC (Bank of America)
-WFC (Wells Fargo)
-C (Citi Group)
-JPM (JP Morgan Chase)
-MS (Morgan Stanley)
All content is Not financial advice. Trade at your own risk.
XLF building a base on demand zoneXLF is currently in Range on Macro Trend, and Uptrend on Micro Trend
"OB" means Order Block " ( def: Big Money Buying/Selling prior to a directional move) * 5m means 5 minutes
TA:
-we hit session low of 39 (3/30/22) a psychological number in a demand zone
-break above 40 for macro uptrend to continue
-multiple Time Frame Order Blocks from 38.95 to 39.64 ( long/short positions being built depends on Market Environment and Price action )
Looks like liquidity is being accumulated for the upside run to 40-41.50
buy the dip 39.04 an 39.25 depending how price action is moving.
look for structure to hold above 39.50 and the break above 40 confirms bullish segment if Market Segment and Macro Trend Align with micro trend
All of this is my predications, and personal opinion. Thank you for reading.
XLF - InterestingSP Financials are coming into the trade, there may well be a large break in trade development.
Keep an eye on these as Banks are going to come under immense duress should 10Yr Yields continue
to grind to 2.85.
Primary Broker-Dealers / Money Center Banks look weak.
NQ BAnk... similar. 5100 may limit upside.
$XLF HOLD or SELLThe financial sector should be benefited from raising rates. But war puts a pressure on the industry as any other "Black Swan event".
Still waiting to lower to support range (33-36 USD).
Head and shoulder indicates a reversion in tendecy. So prices could drop to last broken resistance (aroudn 30-31 USD) coinciding with FIB 0.5 levels (at 29 USD).
Weekly RSI has dropped continuosuly since october. Crossing 30 at index level could help a bullish move and resurgence of price.
XLF Short Set Up Following this retracement there is a chance the XLF will push lower to test the established support area. There's no way no where the top of the current swing will be, but I like to enter these patterns using a set up on a smaller timeframe which allows me to place a much tighter stop-loss and maximizing my R. I wont enter the trade until I see a set up on a smaller timeframe, and if price action reaches the invalidation point, the trade idea is reevaluated.
Not a recommendation.
XLF Long
XLF
Analysis done on daily candles. The financial sector has been one of the more resilient sectors on the stock market in 2022, with most stocks managing to hold their key levels and not declining as severely as major markets. When analyzing bank stock performances, we see that they have lagged way behind many other industries since the Covid crash in recovery, but this year may bring change to that. With interest rates expected to increase starting in March, banks and other financial companies are projected to benefit from this monetary policy change. We’ve been primarily focused on the XLF ETF to gauge overall health in the financial sector; this is an ETF (exchange traded fund) that holds assets such as Berkshire Hathaway, JPMorgan, Back of America…etc. Keeping an eye on this ETF is critical if you’re interested in trading or investing in the financial sector considering it allows you to see how the overall industry is performing. Keep in mind that banks are known to be slow movers, so their breakouts may not be as robust as a tech stock breakout would be, but the patient will be rewarded in the long run.