Today we are taking a look at the most important stock sector in the world: Financials. If Financials are leading the stock market higher, it’s hard to be bearish equities as an asset class. The first thing we want to do is start from the top with Financials relative to the rest of the market as well as from a long-term perspective. Then we’ll take a look at some breadth internals and the sub-sectors that fall within the larger spectrum of Financials, like Regional Banks and Insurance. Once we get structural perspective on Financials as a group, then we’ll work our way down to the individual stock level. That’s the top/down approach that we incorporate into every sector in the market and country around the world. [Read more…]

Every month I host a conference call for All Star Charts Premium Members where we discuss ongoing themes throughout the global marketplace as well as changes in trends where new positions would be most appropriate. This includes U.S. Stocks & Sectors, International Stock Indexes, Commodities, Currencies and Interest Rate Markets.

We’ve been bullish towards US and Global Stocks once again since last month. I still think this is an environment where we need to be buying weakness in stocks, not selling strength. The weight of the evidence is still pointing to an increased amount of risk appetite, not risk aversion. What we’re seeing in the bond market, however, is suggesting interest rates are heading higher. The implications here for assets like Gold, Silver, Crude Oil and the US Dollar is also important to recognize.

I’ll do my best to lay out my weight of the evidence conclusions and walk you step by step with how I got there! This month’s Conference Call will be held on Monday June 19th at 7PM ET. Here are the Registration Details: [Read more…]