Saturday, April 4, 2009
XLF Probably Continues Higher; April 4, 2009
The XLF turned into a real dog as it continues to rally yet lag most sectors and indices. When the market finally rolls over to undergo the huge correction I've been painfully calling for, the XLF will get the worst of it and collapse hard. Yet it doesn't appear ready for it yet. It rallied big a few minutes at the close right at my control point at $9.70 so I closed no XLF positions. I will cut some if it rallies strong in the morning and let the rest of my options run until expiration. The next resistance level appears to be the $10.09 area.
I will not talk about the XLF again unless something significant happens to report on. Again, more rallying Monday will cause me to reduce my XLF position and let the rest run until option expiration later in the month. If it declines sharply I'll report on it here.