I talked about being net long for the market “Trade” this morning, but also said don’t chase Luskin and Gartman into the bear trap called Financials. The XLF closed down -0.13% today, and is starting to look as tired as Dick Fuld must be of trying to define what a “Level 3 Asset” is.
Provided that the XLF doesn’t close higher than 23.78, the negative “Trend” in this sector will remain firmly entrenched. The US Financial Industry needs a full makeover, not a 5 day rally. Sell high, Cover Low.
(chart courtesy of stockcharts.com)