I
have learned that (thanks to the great Ian Notley) – no bull market can operate
without the leadership – or participation from the financial sector of stocks.
This rule would apply to most of the mature global equity markets.
Now
according to Sector SPDRs the SPDR Select Sector Financial (XLF) is a wide
array of diversified financial service firms are featured in this sector with
business lines ranging from investment management to commercial and investment
banking. Among the companies included in the Index are JPMorgan Chase, Wells
Fargo, and BankAmerica Corp. Currently the top weight is Berkshire Hathaway B
(BRK.b) at 9.0% followed by the usual suspect banks and then Goldman Sachs
Group Inc, (GS) at 2.6%.
Note
the chart displaying Berkshire – weekly above Goldman – weekly plotted with
their respective 10 & 40 week simple
moving averages – clearly both still trading above a rising 40 week (or 200 day
M/A) – so there is no break in these bellwethers. By the way both lead us out
of the 2008 financial crisis with the Berkshire
bottom in Feb 20, 2009 and the Goldman bottom in November 21, 2008
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