Home » Chart Of The Day

CHART OF THE DAY: THE UNSTOPPABLE BANKS

14 April 2010 by Cullen Roche 3 Comments

Just how unstoppable has the recent rally in equities been?  To give you some perspective just look at the Financial Services Sector ETF (XLF).  This fund, which is comprised primarily of large banks, has fallen just 8 times in the last 46 sessions!  Over the past 8 weeks this fund has rallied an incredible 23%.  The quality of the rally has been almost unheard of.  Of the 46 sessions only 3 have resulted in 1% losses and there were only 2 consecutive down days during the entire move.  The most recent streak is the most impressive portion of the entire move with the banks moving higher in 14 of the past 16 sessions.  The “can’t lose” market lives on.

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • ts

    High mountains almost always have deep valleys.

    04/14/2010 at 9:57 AM
    • chris

      well, it looks like the market has made a mountain of what most on this site thought was a molehill. i’ve enjoyed the climb of this mountain.

      while i am trying to be ever cautious, i am still overweight and leveraged financials. this mountain will reach its apex eventually, but it is still too early to put away the pitons.

      04/14/2010 at 11:29 AM
      • ctm9000

        great call – i’m jealous

        How can you go wrong:
        - 0% loans from the FED
        - FASB rule changes
        - hiding bad loans
        - not enforcing foreclosures

        04/14/2010 at 3:22 PM