Good Sign:
Below is a chart of how the major S&P sectors fared in 2019 (Novel Investor), and one can see how the financials scored a notable third place finish among the eleven groups (just the 3rd time since 2007 that the space concluded a year in the top three). Perhaps a good omen is if one looks at the performance the following year after a 20% plus yearly advance. Notice in 2012, the group jumped 28.8%, and backed it up with a gain of 35.6% in 2013. It happened again in 2016 with a 22.8% advance, and the next year in 2017 rose 22.2%. Will the lofty 32.1% gain in 2019, be backed up by another solid achievement. Of course no one knows, but we know typically trends in motion tend to remain that way, more likely than they are to reverse. Over the last 6 months the XLF was the second best actor among the 11 S&P groups. One obvious are to watch, is the round 30 number. That was the area of a long cup with handle breakout that began in May 2007 and was taken out just over a month ago. Remain steadfastly bullish as long as that figure holds.