We've been a broken record saying there can be no durable bull market without financials in the mix and now they are. Bank of America (BAC), JP Morgan (JPM), Wells Fargo (WFC) and other bank stocks lifted ETFs (KBE and KRE) along with American Express (AXP) and Berkshire Hathaway with heavy financial holdings (BRK-B). Economic news Thursday focused once again on Jobless Claims (351K vs 355K expected w/ prior revised higher to 365K). Once again higher revisions have been seen for 18 consecutive months. Naturally, this makes for a better headline. The Empire State Mfg data (21.21 vs 17.50 expected w/ prior 19.53) was positive. The Producer Price Index (.4% vs .5% expected and prior .1%) and let's not even mention the core PPI because it's silly. The Philly Fed report (12.5 vs 11.5 expected and prior 10.2) was deemed bullish and rightfully so. Taken together all this data cheered bulls. As investors were running away from Gold (GLD) Wednesday they may also be taking money off the table in bond markets (IEF, TLT, LQD and others) which might as well be deemed sideline money. (I'll be doing a chart video tonight for tomorrow's posting for bonds.) Gold prices were somewhat higher Thursday reversing only some losses from the past week. Commodities overall were mixed as base metals were stronger (DBB & JJC) while crude oil was mixed (USO) and bonds continue to be weak. The dollar (UUP) was slightly weaker. Sector rotation is upon us as even Apple (AAPL) saw some selling after tagging $600. This naturally will then see fund flow from outperforming tech (XLK) to financials (XLF) possibly. Volume still isn't overwhelmingly positive but that's been the case for recent market melt-ups. Breadth per the WSJ was positive overall. Join the conversation with us on twitter and facebook. SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details QQQ - PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund. PowerShares QQQ¿, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock®", is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index.
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