Industry Technicals: Dow Jones U.S. Financials Index
Shorting the financials has been a popular and profitable trade recently. [[SKF]] has been the vehicle many traders have used to short the financials as it is double inverse etf of the The Dow Jones U.S. Financials Index. This index can be traded double-long by using [[UYG]].
Below are the charts of the 10 largest components of The Dow Jones U.S. Financials Index. They represent 39.02% of the holdings.
After reviewing them, I’m somewhat bullish on the technicals. Most of these appear to be set to make a run to the 200 day average, or at the very least, I think they test January highs. Although the markets will start tomorrow near overbought, I might consider some [[UYG]] for a quick trade.
 [[BAC]] 7.08% weighting. Bullish.
 [[JPM]] 5.63% weighting. Bullish.
 [[C]] 5.58% weighting. Weak, but wants to run to the 50 day.
 [[AIG]] 4.95% weighting. Working off oversold condition.
 [[WFC]] 3.68% weighting. Bullish.
 [[GS]] 2.95% weighting. Oversold.
 [[WB]] 2.88% weighting. Beneath 50 day, but will challenge it again.
 [[BK]] 2.12% weighting. Very bullish.
 [[USB]] 2.09% weighting. Very bullish.
[[AXP]] 2.06% weighting. Still beneath 50 day, but will challenge it again.
Thx Shed … actually I was thinking of closing out my SKF for the same reason. Just getting out of the way for now.
I think this rally has some legs .. as high as
nazz 2500
SPX 1440 INDU 13k
but time will tell
February 13th, 2008 at 9:55 pmNP juice.
That J pattern some of them are forming has been a real money trade for me in the past.
February 13th, 2008 at 10:03 pmI happen to agree with you. Unless of course, all of these stocks are about to make lower lows.
You have to admit, they’ve been acting terrible in a great tape.
February 13th, 2008 at 10:59 pm[...] UPDATE: Woodshedder’s trainer just injected him with a full dose of heroin. Wood is calling a bottom in the banks. [...]
February 13th, 2008 at 11:36 pmGood post. I like GS here. Took half today, I’d like to see it hold 180.
February 13th, 2008 at 11:38 pmI really think the financials will bounce back and forth for the foreseeable future. Why not buy the SKF under $100, sell around $110 and buy UYG for the reverse trip prior to reapeating the whole damn process. As I stated last week, this trade should keep working until it doesn’t.
February 14th, 2008 at 12:01 amI’m sorry to hear the methadone treatments didn’t “take.”
February 14th, 2008 at 9:32 amWell Bernanke sure fucked the banks with his comments.
February 14th, 2008 at 11:24 amI thought it was your comments that fucked the banks in true “Woodshedder Bottom” egregious fashion.
Seriously, I don’t think my JPM shorts have had a better day. That “bullshit” call was spot on.
February 14th, 2008 at 6:56 pmJust make sure you cut me my share then, Jake.
February 14th, 2008 at 8:01 pmYou will get “your share” for all such egregiously timed calls.
Your share of abuse.
February 15th, 2008 at 9:34 am[...] of just a couple of weeks. With the Fed decision looming, I thought it best to tblog.trade-radar.comIndustry Technicals: Dow Jones U.S. Financials Index Shorting the financials has been a popular and profitable trade recently. SKF: 113.00 +1.78% has [...]
March 13th, 2008 at 3:40 pm