The major market averages were up on lower volume Friday as the Dow and the S&P 500 retraced all of Thursday's sharp losses, with the Dow making an all-time closing high. Strong economic data on Friday moves the Fed closer to QE tapering closer precious metals got smacked good. But "close" perhaps only counts in horseshoes and hand grenades as the Fed needs to maximum reassurance that the economy is back on track, and with unemployment reasonably above 10% when factoring in those who have given up looking for work, tapering is still at a distance.
We have just updated members in a separate report on a stock that is gapping up today after its pocket pivot on Friday.
The SPDR Select Financial (XLF) ETF had a pocket pivot on Friday as broad strength was seen in a variety of financials stocks, including brokers, money center banks, and regional banks. This included a large number of pocket pivots among financial stocks, including names like SCHW, GS, MS, WFC, BAC, USB, FITB, and FIS. Easy money polices on the part of central banks mean lower or suppressed interest rates which are bullish for banks. Most of these names are on the slower side so position size according to your risk tolerance levels. More aggressive investors may remain uninterested in such names, many which carry relative strengths below 80.
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