XLF attempts a rally. Possible short setup.

[FibMaster]

The financial sector has a major down-trend since last October, and a little counter-trend rally in January. This rally could set up a great short opportunity in the future. See attached daily chart of XLF. Or you could short one of the components of that sectors fund, a financial stock.

There is resistance a little above $29.00 for a possible short entry, and support down at $25.25 to $26.00 for a potential long-term profit target (short). It's early to call for a profit target, but that support is there, worth noting.

If you're using IRA funds for long-term trading, consider the Proshares fund SKF which trades inverse to XLF. Peek at a chart of SKF, compare it to XLF, to see what I mean.

I'll try to update this chart in future. Feel free to post a message here if XLF is near $29.00, to remind me.

[lori]

it's there. and it looks up, up and away! on the dly chart. as of this hour, the wkly trsi has crossed up, so we'll have to wait and see if it holds it own!

[FibMaster]

Updated chart is attached. XLF had a good reversal at Fibonacci resistance. Not a lot of downward momentum yet. Stop-loss above that swing high of Jan 31st on the daily chart, or lower if trading intra-day.

[FibMaster]

Great profits in that move! How do you like this chart now?

[lori]

yep, u called it...ur the man!:)