Financials Want to be the New Leaders
- Posted by Greg Harmon
- on April 25th, 2013
The Financial Select Sector SPDR, $XLF, has been a dog of a stock since the quick rebound after the financial crisis. A quick look at the weekly chart shows the long channel between the 23.6% and 38.2% Fibonacci retracements from July 2009 until January of this year. The break out higher is has not been that exciting to some, but should be in the proper context. The long consolidation suggests a long move higher. The first target, looking at the run from 6 to the consolidation would take it to 20, just above the 50% retracement area. Looking at the downsloping Gann Lines from the top, the move beyond the 1/2 line that
it followed the entire way lower triggered a rapid move through the higher level lines. It is time to throw that one away and focus on the rising Gann Lines. These show how sharp the initial move was along the 1/8 line and then a touch at the 4/1 line before settling at the 3/1 line. But notice that it is rising above the 3/1 line now as well, accelerating. Both the Fibonacci and Gann views give a positive perspective going forward for the XLF, supplementing the straight rising price action.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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