The NYSE Composite is persistent and thoroughly exhausting of late, whether you are bearish or bullish. The current up-cycle that started in late August is being led by stocks of the materials, financials, and industrial sectors. To make matters worse for the bears, breadth is confirming the trend. Price, breadth and sentiment all signal higher levels for now, despite the usual bearish sentiment associated with this time of year.
Summary
NYSE Up-Cycle Participation
Financial stocks are the most promising, as the group bottomed a week ago. The up-cycle in this group is notable, as money center banks and regionals all rally together. Pick any bank and you’ll most likely see a very similar pattern unfolding.
Citigroup broke out of a bullish descending consolidation pattern last week. The stock appreciated 27.41% since February, before consolidating these gains around its 50sma. Now that the stock is breaking higher, we anticipate the cycle-up illustrated has a few more days before running out of energy.
Financial stocks are not the only industry groups and sectors benefiting from the current buying spree. Industrials (XLI) and Materials (XLB) are strong too, so look at these sectors for your next winning stock picks. As always, use your Trade of the Day setup (ToD) for initial entries and stops.
Some interesting commentary this morning, Tesla initiated with a Underperform at Jefferies; tgt $280 and Apple target raised to $194 from $182 at Morgan Stanley $AAPL
The SPX has 35 new all-time highs so far in 2017, nearly double the 18 from last year. Most ever is 77 in 1995. Thanks Corey for the updates.
Have a great day,
Vinny