The markets soared after the first of many upcoming fiscal cliffs was resolved shortly after the new year. Here, trader and blogger Brian Lund of BCLund.com shares the charts of some stocks that he finds interesting.
It looks like the fiscal cliff issue is behind us (or technically still in front of us), and that caused the markets to roar, sending many of last week’s picks up nicely. AIR was up 11%, SCHW was up 9%, ETFC was up 6%, and GS was up 7%, but it’s not hard to do well when the SPX tacks on sixty-five handles.
Let’s start with some macro charts and a little review.
This chart is all good news as the RUT is breaking into all-time highs.
Back in early November, I highlight a breakout point in SKF, the UltraShort Financials ETF, that would be trouble it succeeded (indicated by the arrow). Fortunately it failed and has continue to crumble.
This has been confirmed as its analog ETF, the XLF is moving into four-year highs. If this holds up it is bullish for the financial sector as well as the markets in general.
As most of the world was declaring the death of China, I pointed out in an early October post that the FXI looked like it put a bottom in and was getting ready to break out. Then again in a mid-November post, I mentioned that the FXI had successfully tested its breakout point and 200ma and looked poised to go higher, which it has.
NEXT PAGE: More Interesting Charts