XFN Capped Financial ETF update HFD

xfn dec 8 2012 scxfn dec 8 2012 reuters

These charts are both from the ticker XFN, however, the Sharp chart  uses the Index Fund whereas all other charting services use the Index pure and simple. It is, I believe a consequence of using a total return and a price only concept interchangeable. This causes the chart on the left to slope upwards and the Reuters chart on the right to slope downwards. The Big chart and the Globe and Mail do the same thing, that is slope downwards;

xfn dec 8 2012 g&m

Whatever, in any event from all three charts it is clear that the Capped Financials (that includes insurers!) could be right on the precipice of their own little cliff. The count as well as a Head and Shoulder pattern  indicate that as in the Dow Jones a turn could actually occur just about any moment now. Also these charts explain why this market has been so intensely irritating for both bulls and bears. With the exception of the first 6 months or so following the lows of March 2009, the financials as a group (without cap. weighting) have accomplished absolutely nothing for the last 3 and 1/2 years. If change is going to occur imminently , and to the downside, you may want to look at the HFD ETF;

hfd dec 8 2012 bhfd dec 8 2012 s

This is , of course, the Horizons Capped Financial Down ETF and basically the inverse of the one above even though that is hard to tell from the chart – these ETFs do not track well. The low Friday was at $5.97 and it comes from near $60. Good luck!