Here is a new chart of the Financial ETF with oscillators. If our theory of Time Symmetry is valid, then any diversified index should behave in the same manner and out Time Symmetry theory has a predictability characteristic that goes beyond broad based market indexes. In the case of the Financial ETF, this is a diversified portfolio of stocks representing one of the nine (9) economic sectors. Whenever you take a position in a security, the most critical risk is the market risk so you should open a position during a market up trend. The second most critical risk is the sector risk therefore it is imperative that the stock you select in in an economic sector that is in an uptrend an outperforming the other sectors. The chart above illustrates that the XLF is in a strong up trend on the right side of the T.
In the first four (4) trading days of 2010, the financial ETF has outperformed all other sectors. The above chart illustrates a strong up trend as the green uptrend oscillator moved above the red downtrend oscillator.
The above chart illustrates two T's where the first T expired and the price dropped and the current T that expires sometime this morning 1/8/10.
This is a familiar oscillator that confirms the beginning and ends of the last two T's.
This is a chart of the price oscillator that further confirms that the current T will expire this morning and we can see what happens.
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