ETF Expert

Wells Fargo, Bank of America and Citigroup are all down about 17% - 21% in 2011. Making matters worse, Moody’s has placed these companies under a ratings review.

In fact, the technical picture for Financial ETFs is becoming increasingly bearish. While the Financial Select Sector SPDR (XLF) and iShares DJ Regional Banks (IAT) are only down 7%-8% YTD, they’ve fallen 2x as far from 2011 highs and share prices have fallen below respective 200-day trendlines.

Are we seeing the start of the next systemic shock to the financial system? Or are Financials simply following the playbook of 2010… when the S&P 500 corrected 17% and banks fell even further.

More Bad News for Financials - Brian Rezny, Seeking Alpha
Apple Products Vs Platform - Bill Luby, VIX And More
More Than Half of S&P 500 Stocks Oversold - Bespoke

Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

Tags | Financial ETFs, S&P 500 ETF, Technology ETFs