Germany and Banks Point To Higher Highs In Stocks

By: Chris Ciovacco | Thu, Mar 15, 2012
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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 - so gains can continue, but we would prefer to see leadership broaden in the coming days and weeks.

S&P 500 Sector Weightings Over Time

For those with limited time, the most important technical points in the video below begin at the 9:34 mark. Key points:

  1. 00:00 - 03:55: CCM Models remain bullish - DeMark comments.
  2. 03:55 - 07:58: German stocks (EWG) pass technical retest.
  3. 07:58 - 09:34: Bull-bear bullet points.
  4. 09:34 - 16:17: Financial stocks have a similar look to a bullish set-up from 2009.
  5. 16:17 - 21:00: S&P 500 history of money-printing induced bottoms (1998-2012).
  6. 21:00 - 25:15: Longer-term buy signals for vast majority of global stock markets are in place.

 

 

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, and banks, there are few sectors, asset classes, or regions of the globe exhibiting strong relative strength.

 


 

Chris Ciovacco

Author: Chris Ciovacco

Chris Ciovacco
Ciovacco Capital Management

Chris Ciovacco

Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/