Index Condor - Trade Alert
May 12th, 2008, 8:30 am. Posted under Index Condor Portfolio, Trade Alert !! by AppleOption.
The XLF is the S&P Financial Sector ETF (exchange traded fund).
Fund Profile: (from Yahoo Finance)
“The investment includes companies from the following industries: banks, diversified financials, insurance and real estate. The fund will normally invest at least 95% of its total assets in common stocks that comprise the relevant Select Sector Index. This fund has adopted a policy that requires it to provide shareholders with at least 60 days notice prior to any significant material change in its policy or its underlying index. It is nondiversified.”
Year-to-date performance is down -10.32%. It is also down from the 52-week high of $38.15. The financial sector has taken a big hit, and this years low for the XLF was $22.29. While in the short term the fund might drift lower, AppleOption has a price target of $32 by the end of the year. Just last week we were trading above $27.50.
Chart Examination. The 5-day shows major consolidation to the $26 strike. In fact there is a major support level at $25.82 and then again at $24.75. On the 3-month chart we see the 50-MA support at $25.71, while both the 5-EMA and 20-EMA sit at $26.40. We feel the timing is good to buy into the XLF.
