The Sector: US Large Cap Financials
Here's the ETF that captures large cap Financials
As you can see in the chart above: XLF is right at a level from where one big bullish move and it breaks out for a big move on the upside. It's weird because fundamentally Clinton wants to come down hard on Large banks, strengthen Dodd-Frank Law and Democratic candidates in Congress are in favor of stricter regulations. But it seems the market not in the mood to discount all that right now. It's the economic stability that the market wants to celebrate right now
The stock best positioned for breakout and good gains in the sector: Bank of America
Bank of America stock also at a very critical resistance point of 18 and any breakout above 18 will invite large gains.
There is HOPE that Bull market will continue. US Fed will hike rates in Dec and it will benefit Financials. So, let's see what happens.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers