Sometimes the stocks say it all. When I went over about 1,000 stocks this weekend, I was astonished to see that the stocks with the strongest charts were those in the most offensive categories. Whether it be levered steel companies U.S. Steel (X) and Cleveland-Cliffs (CLF); chemical company Westlake (WLK); homebuilders like PulteGroup (PHM) and D.H. Horton (DHI); aggressive retailers Abercrombie (ANF) and Gap (GPS); or, of course, every oil company, there’s a pattern of amazing strength. Banks big and small have also been rallying, which appears to be about fewer bad loans. Their strength says: “We don’t need to worry about defaults because the consumer is holding up.” No wonder Club holding Wells Fargo (WFC) is a stand out. So is JPMorgan Chase (JPM). They are the two big banks that are at a cross section and hold a ton of loans and deposits. The collective judgment of the market is that both firms will make good on those loans. It’s the kind of brawn that indicates the Federal…
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