XLF Heavyweights:
When one looks at ETFs, sometimes the top-heavy ones are a double-edged sword. Today we will take a peek at some inside the XLF, which some consider essential for the overall group to contribute to an ongoing rally. The top holding in the fund, in BRKB at more than 12%, has certainly lagged down 10% from its most recent 52-week highs (the XLF is just 2% from its annual peak) but looks like a good risk/reward situation here. Notice how touches of the 50 WEEK SMA below have given the stock some breathing room for future advances and the last 4 all recorded bullish candlesticks there too with a harami in March 2023, morning star in October 2023, and then engulfing candles this January and April. This top holding could provide some juice for the XLF to run if it can end this rare 3-week losing streak by Friday’s CLOSE (just one other has occurred since November 2023!) Other influential names to watch include GS which is acting well POST breakout above a double bottom with handle pivot of 617.81 from 6/11, and encapsulating the entire 5-month pattern is an add-on, but devilish, 665.66 cup base pattern here that ws taken out on Wednesday. A break above that trigger could carry a measured move to 890 sometime in 2026. GS is crushing BRKB since the start of April as seen here on the daily ratio chart.