U.S. economic data continue to improve, albeit gradually. If the Fed continues with its easy policy, then cyclical stocks will benefit from both a strengthening economy and central bank support.
This pair is trading in a tight triangle pattern near its 52-week high. Technically this pair is primed to outperform the market as long as macroeconomic fundamentals stay in place.
If the market likes what Bernanke says, perceived riskier currencies will outperform, safe-havens such as the yen will weaken, and cyclical U.S. stocks will push higher.
At the time of publication the author had no position in any of the stocks mentioned. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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