Holy smokes, GS now 241 and XLF closing in on 24, and looks like they're going to keep melting up. I was figuring 250 and 25 as the highs before a correction, but that may be too conservative. Fwiw, I wouldn't consider being short these until you see the 'whites of their eyes', ie weakness demonstrated.
Eventually you'll see a bearish 'shooting star' or 'hanging man' candlestick and that would be the signal of the top, at least in the near term. So far the candlesticks have all been nice and orderly full white candlesticks, with the stock closing at/near the high of the day, which indicates more upside to come. Watch for the hanging man or shooting star and that's the signal if you want to short as a swing trade.
The financials already had a healthy consolidation for several weeks. There was the big surge for a week following the election, then a sideways consolidation with an upward bias for ~ 2 weeks, then they continued upward. The move would have been a lot more vulnerable if that consolidation hadn't occurred.
What's probably going to happen is a couple more nice up days and then another healthy sideways consolidation, which would set up
still another up leg. In that case finding the top to initiate a short is harder.
Alternately, if the melt up gets out of hand and there is no sideways consolidation, then there could be a big pullback.
But for now I would just ride this thing or stay on the sidelines until the move exhausts itself.
