A Trading Bounce Only - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

A Trading Bounce Only

The financial sector had a nice bounce today after it was announced that Warren Buffett would invest $5 Billion into Bank of America. While traders likes the news, they seems to only like it enough to cover their shorts and exit their “bottom fishing” trades.

Take a look at XLF (which represent the banking sector). Notice the lack of follow through to break the sector out of its downward pattern.

xlf

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