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The Select SPDR Financial ETF (AMEX: XLF) will be carefully watched today.
As the market recovers from the Bear Stearns rescue by the Federal Reserve, the U.S. Treasury, and J.P. Morgan Chase (NYSE: JPM), investors will be watching the action in XLF very carefully.
To be sure, lots of bottom fishing will be ongoing in this ETF in the early part of the trading day.
But more important will be what happens after the Fed makes its announcement about interest rates and its expectations on the U.S. economy and the financial markets.
In other words think of XLF as a voting lever from the markets as to what the future might be. A "Yes" vote, XLF going up, would be good. A "No" vote, would be quite a negative at this juncture in the markets.
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He is the author of four books: "Futures And Options For Dummies," "Successful Energy Sector Investing," "Successful Biotech Investing" and co-author of "After-Hours Trading Made Easy."
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