The financials registered their first back to back WEEKLY losses in 2019 Friday, with the XLF falling by an identical 2.1% each time. That weekly drop was the worst of any of the major 11 S&P sectors. Looking at the list of the top components in the ETF it still surprises me with BRKB being the largest weighting. It is nearing correction mode down 9% from most recent 52 week highs, and it lost 2.7% this week, following the 4.4% drop the week prior. The Oracle of Omaha may be losing his touch, and could his investment in AMZN be calling a top for the stock (he is also the largest holder in AAPL). He seems to be conforming to most hedge funds that have those two names among their top holdings.
All Is Not Well With Wells:
As some of the traditional money center banks are backing off, WFC never really joined the party. The stock is now well into bear market territory lower by 23% off most recent 52 week highs, more than double that of JPM and BAC which are off by 7 and 11% from their most recent ascents. It seems it can not shred its poor image from a couple years back. Since the beginning of February 2018, it has made a series of lower highs and lower lows. On its current chart it sports a bear flag formation and can be shorted with a sell stop below 45, and a breakdown carries a measured move to 38.
The insurance sector has been resolute. Many names in the space trade very taut and pay respectable dividends. Below is the chart of AFL, and how it was presented in our 5/9 Financial Report. It ran into a bit of trouble with the very round 50 number in March but has since recorded 14 consecutive CLOSES above the figure, and showed solid character this week advancing 1.8%. Peers that are acting well include CINF and AJG, important to see a number of names firm as you do not want to see a single stock carrying the group on its back. This subsector of the finnies may be a good place to deploy capital as the overall markets contend with possible big double tops.