Financial Select Sector SPDR (NYSE: XLF) Buffeted by News Says Market Timer Frank Kollar
May 12, 2009 (FinancialWire) (By Frank Kollar)
Shares of the ETF Financial Select Sector SPDR (NYSE: XLF) have been buffeted by news for several weeks now as the current administration releases stress test results, and then those results were put into doubt.
One of the reasons we make our decisions based on changes in price and not fundamentals or news events is to avoid what is happening to the Financial SPDRs.
Volatility is approaching 10% a day as investors and traders try to figure out if the future is bullish for this sector or bearish. Unfortunately, the news keeps changing, and so does the outlook.
Trading trends based on changes in price resulted in a buy signal for the Financial SPDRs back in late March. So trend traders are just watching, waiting, and most importantly profiting.
How high can this ETF go? There is no way to know, but initial resistance will be reached at $14.43 and critical resistance is at $16.37. These are levels that corrections can be expected.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Financial Select Sector SPDR .
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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