ETF CORNER

XLF : Measured target of $14.50

XLF : Now what ?

After capturing the key reversal at $15.60 in XLF in this last post (Click here) here is what could be in store for financials in the intermediate term :

 

XLF : All sectors are not created equal.

By looking at the broad market if someone had asked me to guess at what level would XLF trade right now. My best guess would be close to $15.30 above the yellow line. Unfortunately, XLF is trading at $14.53 as i'm typing this. You guessed it. Financials are lagging ... and it's not a healthy sign. Here is what I see for XLF near term.

 

XLF : What would Al Capone do ?

If I were Al Capone, I would short XLF whenever it gets to that third red arrow near $14.50 and let it slide down to $12 ! This pattern is a little bit like the one I posted on DBC earlier in August, Look how well it worked (Click Here) !!