Momentum Monday...The Financials Have Joined The Party

I hope to be back making my weekly Momentum Monday with Ivanhoff next week. I have had to miss the last three weeks as I recover.

Yesterday, Ivanhoff took time off from his weekend Bulgarian Birthday Bash to do the show himself.

He does a great job touring the markets and pointing out the areas of strength.

You can watch/listen right here.

A sector that has not gotten much attention hat looks to be ready to join the all-time highs is the US financial index.

The most popular ETF of the sector is $XLF. I don’t follow it closely because Berkshire Hathaway is actually the largest component of the index and they own so much Wells Fargo that it has perennially underperformed.

My friend JC charted it for us here:

The cousins of the $XLF have already surpassed their 2007 highs:

I have been pretty stubborn avoiding banks and insurance stocks and sticking to payment stocks, but the broadening of financial stock leadership is underway.

As for sexy software stocks?….

The momentum continues to come out of them. It might last 3 months more or it could go on for 12 months, but right now rotation is into biotech, healthcare, financials and large cap tech.

Have a great week.

As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.