In this post on June 21st, I had stated that “the popular XLF (Financial Sector ETF) is also on my radar as one of the more promising swing-short candidates. I haven’t pulled the trigger yet but there are several large financial companies, in fact many of the largest components of the XLF, including banks, credit card companies, insurance companies, & even the almighty BRK-B (Berkshire Hathaway cl.B) that although not ready yet, may be setting up as potentially lucrative swing-short trades.”
Although the KBW Insurance Index is “only” down about 4 1/2 % in the eight trading sessions since then, in reviewing the charts this evening I continue to reiterate my belief that the financials, including the insurance industry, look to offer some of the most attractive swing short opportunities that I’ve seen in a long while. I’ve only made it about a third of the way through reviewing all of the components of KIE (SPDRs KBW Insurance ETF) tonight but I am truly impressed by not only the quality, but also the sheer quantity of short setups with attractive R/R profiles in addition to relatively large profit potential.
There are so many promising trade ideas that it will take some time to finish reviewing all of the charts in the sector and then culling the list for the most promising short candidates,