.. the XLF is still 20% off it's lows.... yet still no one is talking about this
XLF still 20% above lows
- Thread starter drukes1234
- Start date
so what are u saying? its the bttm ?
I think it's a positive sign. Everyone is talking about the financial system collapsing yet the XLF is one of the very few sectors to not be making lower lows.
ask yourself one question: "Self, where has all of the money gone that the fed has lavished upon banks at the discount window? Commodities? Google? Real Estate? Money market accounts with pathetic yields?" Everytime you see one of these big firm analysts on CNBC, they're always crowing about the value play that is Getting Long Financials. They all use the same metrics to measure relative value, and their calls are pushing the borrowed cash into the XLF. Everyone is diversifying their risks, and trying be the first ones to the party, with regards to the great "financials turnaround," and using the billions of borrowed capital to make bogus bets. We will take out the July lows, and the banks will lose billions in bad bets, borrow some more from the discount window, do it again, borrow some more, do it again. It's insanity. Don't believe me? Look at the fact that from July 15, to September 8th, there was a build of around 4 billion shares of the XLF. If you take the approximate avg price during that period of $20 per share...That's an $80 billion dollar inflow! That ain't Don Bright, folks! That's institutional cash flows.
Pretty much like QQQQ in march 2003, when SPY was getting close to the october 2002 low, QQQQ was still 20% above the october low. This must be the start of a new bull market
