XLV & XLF

I think I will continue to monitor the financial sector XLF. It's definitely been rewarding to see it play out as I predicted, even if I'm not in the party, watching from the sidelines feels like being part of the game. I do believe in Citigroup the most out of all the holdings, and I do believe it is undervalued. Will I go into a contract within XLF soon? Possibly.

So, before I started reading today's charts, I got a news notification saying that Trump has urged advisors to end the war with Iran in the coming weeks. Source: bbc.com. This shifts the sectors a bit, even if it's a short lived shift. Here's the thing, XLF and XLE are currently thriving given the current geopolitical state, which pushes inflation and benefits the financial sector. However, like I've mentioned in the last two days, the temporary ceasefire issues by Trump has positively impacted every sector.

If I were a day trader, perhaps this would've been a great week to trade, the market is volatile but predictive. However, for my options angle this wasn't good as the entry wasn't timed properly. Now, I said I was not going to open any contracts this week, my list of cons outweighs the pros. This gives me clarity to observe the sector movement this week.

Since Trump has urged the advisors to end the war, we can look at how this affects the sectors. Immediately, I can say I'd stick to financials as the rates have not been cut and won't be for a while. In today's performance I saw the XLV (Healthcare) lead outperform all the other sectors. This alone prompted me to look for the next candidate within XLV. At the same time, I'll continue to monitor XLF.

It's interesting seeing the news and immediately knowing that a shift is coming. It's something I said I wanted to learn how to surf (the rotations). While I know the shifts are happening, it becomes a bit of a challenge in trying to predict which sector the market favors. I'm sure this will develop with time, taste, and hard work.

At the moment, it seems that the market will start shifting to other sectors. However, I am being held back