XLF Possible Holdings
Recap: XLF ex-dividend takes place on Monday 23rd. Friday we saw XLE and XLF leading the sectors with high oil prices and inflation continuing to grow.
So, let's look at some holdings to choose from this coming week.
Citigroup:
- RSI is at 54.79 which I think is decent, allows room for a run
- 20MA is $108.22 where the current price is above it, we also see higher highs trending since March 12
- 200MA is $111.20 – the current price is only $1.68 off from it
When we combine a mid 50 RSI, Price in between the 20MA and 200MA, a higher high trend, plus the performance from Friday, it tells us this is a great candidate.
Let's look at Morgan Stanley
- Price is well above the 20MA but still $4.78 away from the 200MA
- Current upward trend since ~March 12
- 60 RSI, not the worst, but it is a bit tight
- Upwards in comparison to SPY
I think Morgan Stanley can go to $170 next week if the momentum in financials is maintained. While the RSI does throw me a little bit, we know that sometimes a stock can remain in an overbought position for a while. Not only that, I've seen the recalibration sometimes is only one day, which is not bad.
Lastly, let's look at Wells Fargo
Close to the overbought position, just above the 20MA but ~$10 away from the 200MA ceiling. In addition, it seems like a slow stock. I don't think I'd consider it given its low volatility.
| Holding | Ticker | Current Price | % Change | Monetary Change |
|---|---|---|---|---|
| Berkshire Hathaway B | BRK.B | $480.94 | -0.11% | -$0.54 |
| JPMorgan Chase | JPM | $286.62 | -0.47% | -$1.35 |
| Visa Inc. | V | $301.62 | +0.64% | +$1.92 |
| Mastercard Inc. | MA | $496.32 | +1.05% | +$5.16 |
| Bank of America | BAC | $47.16 | +0.32% | +$0.15 |
| Goldman Sachs | GS | $813.53 | +0.50% | +$4.03 |
| Wells Fargo | WFC | $77.60 | +1.58% | +$1.21 |
| Citigroup | C | $109.52 | +1.01% | +$1.10 |
| Morgan Stanley | MS | $161.47 | +1.84% | +$2.92 |
| American Express | AXP | $295.50 | +0.19% | +$0.56 |
Although I'm not the biggest fan of Wells Fargo, it is second leader on Friday's performance. I feel immediate relief knowing that Morgan Stanley leads the sector, as it is my favorite one so far in XLF
At this time these are the only holdings I'll consider, tomorrow I'll go for a game plan to be prepared to enter a contract if it's the right timing.
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