Wednesday, September 14, 2011

Chartology: "A Possibly Bullish Path for Financials" (XLF)

A follow-up to yesterday's "Citigroup Cuts U.S. Bank Profit Targets by 45% on Europe, Slowing Growth (XLF; GS; JPM; MS; BAC; C)".

From Slope of Hope:

I must say, many of the individual financial issues (GS, BAC, JPM, etc.) look so horribly sold-off that it seems not out of the question that a powerful rally could ensue. Below is the ETF for financial stocks. If it gets its footing, it could be in for a nearly 20% push higher from current levels.

Of course, the market has so many cross-currents right now, the above could just as easily break support at 12 and plunge to God-knows-where.

For myself, I am so disgusted and jerked-around by the Euro obsession and the looming Fed news next week that I have trimmed back my portfolio risk to a bare minimum. This environment is simply too schitzo for me to feel comfortable with any meaningful amount of risk.