Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

XLF Nearing a Peak?


Now that the Financial Select Sector SPDR (NYSE: XLF) has climbed to my optimal next upside target zone 13.80-14.00 (I took my profit late yesterday), let's notice that the price structure has climbed vertically towards the top trendline of the July bullish price channel. My near term work aruges that we should expect a peak in and around the 14.00-14.20 area in the upcoming hours, which could coincide with the rebalance of Citigroup (C) after the close this evening. C is going into the S&P 500, and supposedly The Street must buy 650 million shares to "rebalance" their index portfolios. Whether or not a lift in C into the close will drag the rest of the financials is the question. So far today, the financials are acting well- perhaps in sympathy with C. Notice that the banks that are considered to be Governement Entities, such as C, AIG, BAC act the strongest, for whatever reason. Be that as it may, the last 20 minutes of trading will be very interesting in the banking sector, and might be the catalyst that puts a peak in the XLF.    MJP 8/05/09 1140 AM ET (13.78)

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!