Monday Sector Strength
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
The timing of today's rally made sense based on some of the stats provided by Investor's Intelligence who are reporting favorable weekly selling climaxes (which translates to accumulation of oversold stocks), a large drop in bullish sentiment (finally!), very strong insider buying and extremely oversold short-term and long-term momentum indicators.
The subprime area was center stage again today, only this time because the dramatic declines may have finally reached their lows (couldn't get much lower). These two bond insurers above were the heroes as New York state set in motion steps to help their finances. I wouldn't be buying these stocks, but I'm following their stories along with the charts below as part of the base developing for the intermediate cycle.
The bond insurers may be on the mend, now the mortgage insurers need to do the same. Improvement here would be very welcome.
The mortgage finance group dropped like a rock last fall, but may have just retested the lows. The home builders held at very long-term support dating back to 2002.
