Marketview: Steady Rise

Every concern that encroached on the bull thesis has been resolved by higher prices.  Typical gauges like sentiment extremes, index divergence, and irregular price action have been ignored or cast aside.  This bull market is very real and appears to be following the 2010 analog quite closely.  Trend indicators are weakening slightly but still biased to the upside.  I will post immediately when they roll over.

This week we saw absolute domination of financials and some gentle rotation into the neglected sectors of materials, energy, and healthcare.  In my previous post I wrote that I feel that financial and industrial sectors will provide the next leadership of this run.  Materials and energy could take the reigns but rarely does a underperforming sector jump straight to leadership role.

Next week is fairly light on the economic calendar.  If the bulls can chew through supply at $SPX 1400 then we could be in for another trend week.  We could easily see a correction, and yes, this run will end, but with fresh money moving into equities and especially financials the probabilities point to additional price discovery to the upside.  No one said that trends were easy.

Winners: $BAC, $C, $JPM, $USB, $COF, $GE, $UNP, $AA

 

Losers: $TWX, $CMCSA, $SO, $EXC, $FCX, $MON, $EMC, $ORCL

 


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