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The Financial Scare Continues


ETF Watchlist

The Dow has plunged nearly 600 points before the Wednesday’s session as worries of another financial institution going under reignite. Credit Suisse (CS) is the next big bank in the crosshairs of the regulators as shares tank over 30% after a Saudi backer rules out further assistance for the bank.

This puts the financial sector back on our watchlist as the fear of contagion is now gripping the market yet again.

Financial Select Sector SPDR ETF (XLF)

So far, the XLF is down 3% in pre-market trading and continues to look weak. If this back also goes down, we expect not only the sector to get dragged down with it, but the overall market to take a hit as well.

One thing is for sure with all this financial debauchery, we are not quite out of the woods yet. For entry of a bearish trade, we would want to look for XLF to give us a good entry. Meaning, we would like to see some kind of relief bounce at some point to enter a bearish trade.

That will give us the high probability of the trade working out and avoid our stops getting hit too soon. Patience and discipline, as always, is the name of the game.

Don’t forget to watch my market breakdown below for more trade ideas.

And if you want to see the latest trade my students and I put on for my Smart Trades options trading service, you’ll have to join today! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today!

I look forward to trading with you, but until then, as always…

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

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