After running tonight's Alert HQ process, the Thursday ETF Scorecard shows that the financials have not only rallied since then, they have established strong bullish trends. Six of the top 10 are financial ETFs and there is another one at position 19.
The following ETFs have registered the strongest possible trend score (6 out of 6) indicating solid bullish trends in progress:
|FAS||Direxion Daily Financial Bull 3X Shares|
|IYG||iShares Dow Jones U.S. Financial Services Index Fund|
|RKH||Merrill Lynch Regional Bank HOLDRS|
|UYG||ProShares Ultra Financials ETF|
|VFH||Vanguard Financials ETF|
|XLF||Select Sector SPDR Fund - Financial|
Sitting a bit further down the list at position 19 with a trend score of 5.5 out of 6 is the iShares Dow Jones U.S. Financials Index Fund (IYF).
The following chart is typical of the entire group:
If you are one of those who thinks the market can't make further meaningful gains without the participation of the financials, it looks like you can breathe a sigh of relief.
On the other hand, if you are pessimistic on the outlook for the financials, tonight's results are an indication of how extended the market has become with the worst sector finally getting its time in the sun.
In any case, the financials have momentum and now we even have a Republican member of the House planning to sponsor a bill to repeal the Dodd-Frank financial regulatory law that passed a mere six months ago. It's looking like the path of least resistance for the banks is up.
Disclosure: no positions