You can now add the Financial Sector Index to your list of new 52-week highs. This is further evidence of expansion in upside participation, not contraction. Breadth improvements like this keep adding up, there’s no denying that. It’s hard to make the argument that Financials are underperforming when they’re hitting new 10-month highs relative to the S&P500, which is the exact opposite of underperforming.
Rotation rotation rotation. It’s the lifeblood of a bull market.
Remember when the bears were arguing that it was defensive rotation and the market was being driven by Utilities and Staples? Well both of those sectors are actually down YTD relative to the S&P500 and still making new relative lows.
So yes, positive rotation is what we’re seeing.
Today we’re looking at Financials pushing up against their historic 2007 highs for the 3rd time: [Read more…]