I commence with my gratitude to The Creator.
Financial stocks are the top-performing slice today within the 10 sectors that make up the S&P 500.
The Financial Select Sector SPDR Fund (XLF) is rallying more than 2% in afternoon trading Tuesday but volume is relatively subdued.
About 56 million shares have traded hands with less than two hours until the closing bell, compared with the 30-day average of about 64.5 million shares, according to FactSet.
Bulls would like to see XLF volume of at least 100 million shares to show conviction in today’s rally.
In fact, a quick look at the volume trends in XLF so far this year is not encouraging. The ETF has seen volume exceed 100 million shares on seven days in 2011, and the financial sector closed in the red every time.
• Jan. 7 – 178.1 million shares (0.9% loss)
• Jan. 19 – 117.4 million shares (2.2% loss)
• Feb. 23 – 115.7 million shares (0.4% loss)
• Jan. 28 – 113.1 million shares (1.7% loss)
• March 1 – 106.2 million shares (2.1% loss)
• March 4 – 105 million shares (1.2% loss)
• Feb. 22 – 102.2 million shares (3.1% loss)
• Jan. 19 – 117.4 million shares (2.2% loss)
• Feb. 23 – 115.7 million shares (0.4% loss)
• Jan. 28 – 113.1 million shares (1.7% loss)
• March 1 – 106.2 million shares (2.1% loss)
• March 4 – 105 million shares (1.2% loss)
• Feb. 22 – 102.2 million shares (3.1% loss)
Source for this information and XLF volume, performance: FactSet Research, MarketWatch
THE MOST ACCURATE FORECASTING OF FINANCIAL MARKETS
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