Germany and Banks Point To Higher Highs In Stocks (SPY, EWG, XHB, XLF, VWO)
Chris Ciovacco: As shown below, the market is currently being carried by tech, retail/consumer discretionary, and banks. These sectors do have a big impact on the daily movement in the S&P 500 Index (NYSEArca:SPY) – so gains can continue, but we would prefer to see leadership broaden in the coming days and weeks.
For those with limited time, the most important technical points in the video below begin at the 9:34 mark. Key points:
- 00:00 – 03:55: CCM Models remain bullish – DeMark comments.
- 03:55 – 07:58: German stocks (NYSEArca:EWG) pass technical retest.
- 07:58 – 09:34: Bull-bear bullet points.
- 09:34 – 16:17: Financial stocks (NYSEArca:XLF) have a similar look to a bullish set-up from 2009.
- 16:17 – 21:00: S&P 500 history of money-printing induced bottoms (1998-2012).
- 21:00 – 25:15: Longer-term buy signals for vast majority of global stock markets (NYSEArca:VWO) are in place.
After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
A concern, or bearish counterargument, not included in the video above, is the narrow leadership in the current market. Outside of technology, retail/consumer discretionary, homebuilders (NYSEArca:XHB), and banks (NYSEArca:XLF), there are few sectors, asset classes, or regions of the globe exhibiting strong relative strength.
Chris Ciovacco began his investment career with Morgan Stanley in Atlanta in 1994. With a focus on global macro investing, Chris uses both fundamental and technical analysis to assist in managing risk while looking for growth opportunities around the globe in all asset classes. If you are looking for an independent money manager or financial advisor, Ciovacco Capital is worth a look. Chris graduated from Georgia Tech with Highest Honors earning a degree in Industrial and Systems Engineering in 1990. His experience in the professional ranks began in 1985 as he began working as a co-op for IBM in Atlanta.
Ciovacco Capital Management, LLC (CCM) is an independent money management firm serving clients nationwide. By utilizing extensive research, disciplined risk management techniques, and a globally diversified approach, CCM prudently manages investments for individuals and business owners. Our focus is on principal protection and purchasing power preservation in an ever-changing global investment climate.