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It’s pretty easy to find someone suggesting on CNBC that investors should own…”High Dividend paying stocks!” This post is not suggesting that ownership of high dividend paying stocks has been wrong or is a bad idea going forward. Three weeks ago a 3-pack of financial stocks was created, suggesting how key PFF was at the time for financials and the broad markets (see post here)…PFF is important once again!
PFF is an ETF with a high dividend stream and is overweighted towards the banking sector.The “Power of the Pattern” highlighted this morning that Financials have been one of the better assets to own over the past 60 days (see post here)
PFF has done very well of late and is paying a pretty high dividend stream. Keep a close eye on PFF right now, as the near term price action in PFF could be a tip to what banks and the broad market do from here!
If PFF can break above resistance at (1), it would be sending a positive message for banks and the broad market.
given the RSI near 80, severely overbought and bearish wicks elsewhere, I would say good probability of retracement to the 200-MA near $37