It’s the unofficial kickoff of earnings season, and it’s safe to say that expectations are running high…
The big banks and a few others are up among the first to report first-quarter earnings.
And according to my stock screener, the entire Financial sector as a whole is second out the 11 major sectors based on relative strength. If you’re one of my curious subscribers, only the Energy sector fared better.
But how did I figure this little piece of information out?
Today’s video is a prime example of how to target individual stocks and sectors in order to drill down on specific positions. So let’s talk all things Financial sector… like what’s expected to happen when big banks report earnings this week, and even a handful of 90-day breakout financial stocks ready to explode.
You may or may not know this, but I have a cool Cumulative Strength Index (CSI) scan. I use it as a barometer for the overall market, and to gauge the S&P 500, the Nasdaq 100 and the 11 major sectors.
And using this scan, you’ll see that the Energy sector is still outperforming the Financial sector.
But if you look at it on a one-month basis, you’ll notice the Energy sector is down 10%, while Financials are up 1.56%. And if you consider the fact that Energy is strong on a cumulative basis — mostly because on a six-month basis it went up quite a bit — the Financial sector is second based on relative strength.
Earnings are supposed to be this quarter. It’s the first time some companies might be able to stand on their own two feet, so to speak, since COVID-19 wreaked havoc on anything and everything.
But we’ll figure out if that’s true when big banks report earnings this week.
Over the past two trading weeks, the Financial Select Sector SPDR Fund (NYSEArca: XLF) has been trading sideways. And as I always say, markets move vertical and horizontal. That’s just the pattern of the broader market.
So what should we make of all this as big banks report earnings this week? Check out my short video below so you can stay in the know. And be sure to share your thoughts in the comment section below.
And as always, don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. I’m finally revealing a little-known trading strategy I’ve been working on for over a decade now…
It targets a specific group of stocks… about 100 in total that repeatedly enter these 14-day breakout windows.
Jumping in and out with gains like 78%… 89%… and even 92%!
Every two weeks, without fail.
The next 14-day window is fast approaching, and anyone in the know could tap into it as early as this week…