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Last week, when stocks were on the defensive, I pointed out the continued presence of positive money flows within the market. And as it turned out, Monday was the low of the week. Stocks rallied smartly and then ended up closing at their highest level in four weeks. So what’s all the fuss about?I’ll be honest here and say it doesn’t bother me one bit. After all, it’s part of what makes a market. My primary purpose isn’t to persuade you to be bullish or bearish, but rather, to point out the nature of the sectors doing well in this tape.And as it turns out, the leadership we’re seeing continues to support the bullish outlook for stocks. Have a look…
When the “Monied” Interests Lead…
Banks kicked off earnings season last week, and although there were some warnings about the economy going forward, their results were largely positive.As a result, financials exploded into the one-week leadership position, but even more importantly, claimed the one-year leadership role.During my live sessions, I often talk about how asking the right questions will often get you to a better place than just having the right answers. So, let me ask you this:Do you think we’d be on the precipice of a recession if banks, whose primary business is lending money, are outperforming the rest of the market?Anyhow, energy has some short-term momentum too, but I don’t expect it to last much longer. I commented recently how this could be a bottoming signal, and after Trump’s words at yesterday’s inaugural address, “Drill baby, drill,” I don’t think we’ll see it on the scoreboard much longer.Even so, I remain adamant that we still need to start seeing the right sectors lead in the coming weeks, and as I will be sharing with you shortly, I think there’s something even bigger (bullish) brewing, and it’s happening abroad.I’ll keep you in the loop,More By This Author:Here’s How To Play The “Big Bounce”
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