Through The Lens Of Gaps

The week of February 5 was devastating for the bulls. The week of February 12 was devastating for the bears. I have a feeling that the shortened week we’re approaching after Presidents’ Day will have the torch back in bear hands. Sure, we might have a little more strength, but we are so deliciously close to major gap fills, I am looking ahead to next week with anticipation (and, admittedly, some anxiety). These markets, in spite of having greatly different components, all pretty much look the same. The emerging markets:

gap-eem

The high yield bond fund:

gap-hyg

The junk bonds:

gap-jnk

And the financials:

gap-xlf

The one sector which isn’t anywhere close to completely its gap fill is real estate. I’m not sure if that means there’s plenty more strength left, or if the sector is so weak that this is the best it can do.

gap-iyr

Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.