Canadian Financials Bear TA

Below is a 6 month chart of the Canadian Financials Bear Fund (HFD.TO).

Comprised largely of the Big 5 Canadian banks, the HFD is a double inverse fund on the verge of a possible breakout.

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Canadian Financials (XFN)

1 year chart of the XFN, the Canadian Financials ETF.

Commentators have been saying for some time that the Canadian Banks are less exposed to the sub-prime fiasco and more conservatively managed. If the downtrend line holds, things may get ugly. Technical indicators appear mixed: Slow STO has bottomed which may mean a bounce or short term spike above the green downtrend while the RSI remains in a downtrend.

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TA for financials and gold

Today's TA on financials (XLF) and gold miners (GDX), both are at critical crossroads:

GDX in total opposition to the financials:

Price action over the next few sessions could confirm trend changes for both sides of the equity market.

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