Financial Stocks in the U.S. look like they're breaking out on the upside! - Same thing in Canada
The attached chart 1 shows the ETF Financials Select Sector SPDR (XLF) US$ 22.93. This ETF reflects the financial stocks and the components of the index is shown in attachment 3.
Attachment 2 shows the Point&Figure chart
with the huge upside breakout in 2015 at US$ 16 for a 50% gain. Since July last year XLF has been forming a triangle formation and we expect a breakout on the upside in the next few weeks. The advance yesterday (+2.2%) was because JPMorgan released better than expected earnings (US$ 1.35 versus expected US$ 1.26).
In Canada, the S&P/TSX Capped Financial Index (XFN CAD 30.55) is approaching the all-time high of CAD 31 (attachment 4). And this despite all the mourns of the investors about Canadian banks to be too heavily
involved in real estate and being exposed to the big oil sector in Canada.
Canadian banks, as per the World Economic Forum, are the soundest banks in the world. When you compare the stock prices of the Canadian banks to the stock prices of some big banks in Switzerland or Europe you
will notice what we mean!!!
