Financial Sector: Solid Volume, Solid Trade, Low Value
In trade on Thursday the XLF, the financial sector ETF, gained 0.12 points (1.11%) to trade at 10.497on decent volume; 216,000,000 ETF's changed hands, close to the daily average. The banking sector was moved higher on earnings expectations and news that the stress test results for the banking industry are to be released in early May. Those reports will do one of two things; drop Wall Street by three or four times the daily average, or confirm that at $11 a share the XLF is on sale, and very likely rally the whole equity market.
Dollar Index: Still Holding In There
The index refuses to give up ground to the major pairs, and is stubbornly holding values above major support at 84.00. Even on days of equity and oil buyer the greenback is finding buyers, but cracks may be appearing in the fact that Treasury auctions and Fed buying should start to reduce naturally the value and appeal of the dollar in the eyes of its holders. The last ten days of trade have seen the index tested support and resistance, with not one of the major pairs able to break either way. It seems not to be if the de-valuation comes, just when, but right now the speculative interest in long dollar positions is fighting to maintain status quo.