The monthly strategy session has always been one of my favorite things we do here at All Star Charts. I’ve been watching these calls for like ten years now. Since long before I worked here.
They are a huge part of my process.
So, when I got the call from JC on Monday, I was pumped. It’s always an honor.
Not to mention, there’s so much to talk about right now… from some major intermarket developments to the expansion in participation for global equities and commodities. We covered it all.
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And for the rest of you, here’s one of my favorite charts from the slide deck:
This is a custom equal-weighted index of some of the absolute worst financial stocks from the great financial crisis. It is a basket of the sector culprits that almost brought down the entire financial system two decades ago.
But, they’re still not dead. And don’t get me wrong, we’ve lost some over the years so there is definitely some survivorship bias built in here.
But, a bullish data point remains. It’s that the worst financial stocks that haven’t gone to zero are actually breaking out and filling that massive memory gap from the 2008 crash.
And you already know how the best ones are doing. Stocks like JP Morgan and Goldman Sachs are at all-time highs.
Now, I think the laggards like Citi and AIG are about to make some monster catch-up moves.
Seeing such risk-on stocks break out of massive multi-decade bases can only be viewed in one way… bullish.
