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XLF And Financials: Very Skeptical Long Term, But A Major Short Covering Rally Is Possible Here

April 26, 2008 8:04 AM

XLF and the market in general appears poised to possibly make a gap higher here. $27.17 is a key number on XLF and it is nearing it and it may take it out Monday or soon. If it takes it out and does not immediately reverse, then it appears that we could explode to the upside here. There really is nothing to stop the SP from moving higher here. (other than economic reality, that is, but let’s not let facts get in the way of making money)…..

Goldman cleared a key number on Thursday as I mentioned, and has led to the recent spike. I do believe GS will likely reverse near $200 however, so careful on this euphoria. If we get much over $27.17 and do not reverse, and certainly if we clear $27.37 on XLF, it appears that it could make a run to $30.00 on a major short covering push. There is MASSIVE short intererest in XLF and financials (for good reason) ….IF they ever begin to cover, it will make a major one day push.

Written by Tom@StockBlade.com · Filed Under XLF 

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One Response to “XLF And Financials: Very Skeptical Long Term, But A Major Short Covering Rally Is Possible Here”

  1. Bear Market Plunge: StockBlade Timeline Of Views For 2008 | on October 28th, 2008 12:17 am

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