Hated Enough?

When sentiment within a sector becomes too negative, it could be a sign that things will eventually change. Of course in my opinion the only way to truly gauge that is through affirmative PRICE action, and looking at each individual name on its own merits. The XLF deserves to be in the doghouse, as BRKB, the top holding in the XLF, is now looking to complete the right clavicle in a bearish head and shoulders pattern, and a move below a neckline pivot of 205 carries a measured move to 187 (its 200 day SMA has been sloping lower for one year now). The second largest holding with the fund is JPM, and it currently trades 27% off most recent 52 week highs, and to be frank has held onto the very round par number well. BAC is trading below both its 50 and 200 day SMAs, and rounding out the top 10 would be another weakling in WFC which is 58% off its most recent yearly peak, and it has formed a bear flag formation after this week has done nothing in the way of rectifying last weeks cratering of nearly 10%. This action has cast a pall over some names within the arena, that could provide some attractive opportunities.

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