Friday, July 8, 2011

Gossip on Sector ETF Rankings - July 8, 2011

If the market close here, the S&P 500 would be flat compared to last weeks close. But our long XLE / short XLF strategy would return a combined more than 2% in one week. Just want to reiterate the following key points
  • It is necessary to have a protection when economic outlook is not clear
  • Although XLF led the snap back, it would underperform because financials' dire financial strength
  • Despite a falling oil price, XLE will rise if economy recovers.

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