We’ve joked about the recent rally and how, if you were new to the market, you might think that there was an SEC ban on all selling. We all know the stats by now. Stocks have risen in 70%+ of all sessions for over double digit gains over the last 2 months. Monday’s are almost guaranteed 1% rallies. Volume is always low. Declines are never more than 0.2%. But this all pales in comparison to what has happened in the banking sector. The banks have rallied a jaw-dropping 83% of the time during the recent rally. Out of the 41 previous sessions just 7 of them have been to the downside and just 3 of those were 1% declines. Over the course of the move the banks have surged 21.5%. You could certainly call the banks the most hated sector in the entire U.S. economy so it’s only appropriate that the banks surge over the course of the world’s most hated rally….
Did you have a comment or question about this post, finance, economics or your love life? Feel free to use the discussion forum here to continue the discussion.*
*We take no responsibility for bad relationship advice.