As we wrote earlier today, we do not like this market at these levels. I rather miss a 5 % rally than risk losing 5% or 10% to the downside. Hoping the EU does the right thing and quickly enough is not worth betting on a year end rally. We told readers to sell at the 1214 region on the S&P 500 if we were lucky enough to get there.
Back on November 16th we told readers DO NOT BUY Financials. XLK - Financial Select Sector SPDR was trading at $12.70 to $13.00 on the 16th. Today it closed at $12.07, for about a -6% loss. We also said this morning to our members don't look for directional trades, and look to short Financials against going long XLK (Technology). Full disclosure we did not execute that trade today. So after the close the major financials had a downgrade from S&P, which in my contrarian view, think this will lead to a buying opportunity if they sell off hard enough.
Let's look at some of the widely held names on a technical level.
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