Saturday Morning Chartoons: Banks Are Emerging

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.

We came into last week wondering if we'd get follow through from Bank stocks.

I think we can all agree that we did. And not just in the U.S. but around the world.

Here are Regional Banks above those key 2018 highs:

There are few things as bullish as Regional Bank stocks acting well.

We went over all things Financials including new long positions in yesterday's note.

These look like uptrends to me:

How bad could things be if these European Banks are above key support?

Meanwhile, a big one to focus on is the inability for Discretionary stocks to break out relative to Staples:

One would think we'd see new highs here if the average and median stocks are going to start making progress again.

Zoom in and you can really see the divergence:

If you add the Communications and Tech to the conversation, those Q1 relative highs really need to hold:

Most stocks have not been doing well, as we discussed here.

We're watching these charts above as a signal that things are changing for the better.

One thing that has not changed is the underperformance out of Emerging Markets:

These things are still trending down.

But if you view The Economist as a contrarian indicator, which we do of course, I'm think a tradable low can't be too far away....

These two gems just came within a couple of weeks of each other. In my experience these don't normally show up near the beginning of trends, but more than likely near the end of them.

A weaker Dollar could spark that reversal. So we're watching that very closely as we finish up the summer and gear up for September - December trading, which is historically much different than July - August period.

And if anyone is begging for a weaker Dollar, it has to be the Gold bugs.

Nobody wants these rocks. They're literally buying anything else, except for precious metals.

Want a sure fire way to get a bunch of crazy people trolling you?

Get the media to publish this guy right here:

Hilarious. 

Headlines like these really fire up the animal spirits. 

But I'm not the one they should be angry at. It's themselves that are to blame.

So I don't take it personally.

In fact, I'm happy to buy gold and silver when they're going up.

Anything else would be foolish.

But that's just not what's happening right now, obviously.

There have been better places to be. And when that changes, we'll adapt accordingly.

What's wrong with that?

Here are the rest of this week's charts and trades: