Banks don’t care about DeepSeek $XLF – January 27, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at the financial ETF XLF ( NYSEARCA: XLF ).
There’s a lot of hubbub today about semiconductor stocks because semiconductors broke down after the whole thing with DeepSeek, out of China. And how some of these AI companies like NVIDIA ( NASDAQ: NVDA ) may be overvalued because the Chinese were able to do better with less capable hardware.
That had the market flushing out of semiconductor stocks like NVIDIA ( NASDAQ: NVDA ) today and rotating into some of the banks. Evidently, the banks don’t care about Chinese AI and we see XLF ( NYSEARCA: XLF ) near the highs here.
This actually looks pretty interesting, and I would look for some upside follow-through on XLF ( NYSEARCA: XLF ) above 51.60. If you get a close above 51.60, I think that could be an actionable trade with a stop-loss in and around that 8-day exponential period moving average, that’s the orange line here on the chart.
When the market is weak I love searching for relative strength and stocks that are strong amidst some of the weakness, and some of the banks are. This is one way to play them, I hope it’s helpful.
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