June 10 Update on XLF Spread Trade

The current spread trade on financial ETF XLF is still open. There are both fundamental and technical reasons to keep this trade open.

Fundamentally, there is both news geopolitically and financial that could affect XLF in a big way. The geopolitical news cycle is at a high this week due to the Singapore Summit. The fallout from the G-7 meeting will also be in the news this  weekend and into next week. Financially, the FOMC meets this week.

Technically, the weekly is banging up against the 50 day average as last week it bounced off of the 20 day moving average. A chart from Etrade is below.

 




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