Tag "financials"

Investors: What Happens Next For Banks Stocks Is Important

The financial sector and banks stocks have always carried weight in the markets. The markets tend to perform well when they are leading, and underperform up to, and during, corrections and crises. So it’s always a good idea to monitor the health of the financial sector. The chart below looks…

Corporate Credit Markets: Party Like It’s 2017!

It has been quite a while since I have written about the state of the corporate bond market. Longtime readers know that I follow the corporate credit markets very closely as the main tell of what drives equity markets. And considering the noise surrounding the markets, it probably a good…

Financials Sector (XLF) Showing Signs Of Strength

One of the biggest things happening in the market right now is the move seen in financial stocks relative to the broader market (i.e. S&P 500). But to really appreciate the move, we need to step back and look at just how bad it’s been for financial sector stocks. Since…

Smart Money Positions For Rotation Into Financial Stocks

Smart Money Option Traders Position for Rotation to Financial Stocks / Sector Financial stocks, Banks and Insurance in particular, have been one of the places to avoid during this multi-year bull market. Those sectors were amongst those lagging the most… and they offered very little in terms of revenue growth….

Global Divergence Warned Of Pullback In U.S. Bank Stocks

In May, Arun Chopra, CFA, CMT and I noted the following market divergence between U.S. bank stocks (XLF) and Deutsche Bank (DB). We were concerned that U.S. bank stocks may get pulled down by fellow European banks such as Deutsche Bank. Here’s the chart from May: In May, we asked “It doesn’t matter…

Financial Sector ETFs Fall Flat Despite February Rally

Perhaps one of the biggest surprises of the 2016 correction has been the overall depressing price action in bank stocks, financial services, and financial sector ETFs. A new era of Fed tightening had many believing that this would be the year that these stocks shined. The financial sector after all…

Did The Banking Sector Peak? Here Are The Implications

The financial and banking sector has been hard hit over the past month. But it shouldn’t be surprising given the recent stock market decline and stress in credit (i.e. high yield land). It’s hard to believe it was January 2, 2015 when I last posted about two very important patterns…

Investors Bottom Fishing In Basic Materials And Financials

S&P 500 Index (SPX) Forms A Hammer Last Wednesday, the stock market made a short-term bottom, declining sharply before reversing course. Crude Oil prices also put in multi-year lows and the yield on the US 10 Year Treasury Yield fell below the 2% for much of the session (here’s why that’s…

Are Cyclicals Back? 5 Market Signals To Watch This Summer

Over the last six months, the stock market has traded in a long boring side-ways wave. But signals are there that things should begin to get interesting again in the months ahead, especially as we look at cyclicals. The charts below include 5 things that I will be watching over the coming…

Financials: Is The Stage Set For Long-Term Market Leadership?

Tactically speaking, the Financials sector, via the Vanguard Financials ETF (VFH), has taken off from a relative strength perspective versus the S&P 500 and broader stock market. And at the same time, its daily price action is testing key resistance, which could lead to a breakout to all-time highs. All of…