…But certainly not too big to short. Here’s a weekly chart of XLF highlighting the peak to trough corrections following the weekly overbought readings going back to 2007.
Zooming into the daily charts, let’s just focus on the top 5 holdings of XLF, as they comprise nearly 37% of the holdings in that widely held financial ETF. As noted on the charts, Berkshire Hathaway cl. B, which is the largest component of XLF, is comprised of nearly a 20% stake in Wells Fargo Corp, which is also the third largest component of XLF. Therefore, WFC is definitely one to keep on your radar.