Financials Continue to Surge (Time to Sell?)

The SPDR Financial ETF ($XLF) gained 0.5% today to close at the best level since last May even though a late day sell-off in Bank of America ($BAC) weighed on the sector. Rumors that $BAC was going to issue shares sent the stock lower by 2.8%, however after the company refuted the news after the closing bell the stock rallied over 1%.

I did get a questionable feeling today as I watched $BAC go from positive to negative and the other financials closed off the highs of the day. I have a couple financial positions that have gains after the big rally since December and the question is whether to sell now and lock-in the gains or let them ride?

I have not made that decision as of tonight. As much as I do not want to sell, my gut and the charts tell me a pullback in the sector is overdue. That being said, trying to time a high to sell and rebuying on a pullback is one of the more difficult investment strategies to pull off. The next 24-72 hours will be spent analyzing more of the charts and recent market action to make a decision.