It's Saturday Morning Chartoons time.
This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.
The talk around town this week is the potential "double bottom" in US Interest Rates.
You can see that here along with the higher low in the highly correlated Regional Bank stocks:
Is the resiliency in Copper pointing to higher rates?
You can see Copper relative to Gold here and how closely the ratio moves with rates:
The strength in Copper and other base metals is impressive. We dove into it on this week's Live Strategy Session along with our favorite Steel Stocks to take advantage of these trends.
But it's the weakness in Gold that really stands out. No one wants these rocks.
Gold has been the worst trade on the sheets since last summer. Almost everything else has been going up in price, except for Gold.
In fact, relative to the Nasdaq100, the Gold ETF $GLD just went out at new all-time lows. And relative to the S&P500, $GLD is making new 16-year lows:
Does all this mean higher rates?
Are Financials likely to do well if rates are moving higher?
I'd argue yes. A breakout in $XLF above those May highs could send those names soaring:
We already like certain Financials, but if the breadth there broadens out, I can't imagine that would be a negative for the overall stock market.
It's gotta be constructive.
Here are the rest of this week's charts and trades:
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