92% of US Financial Stocks Are Above 50-Day Moving Average and Other Market Internal Stats
by Eric Bush of GaveKal Capital,
For the past couple of months, and especially since the US presidential election, US financial stocks have been on a great run. On an equal-weighted basis, US mid and large cap financial stocks are up a scorching 16.7% over the past 50 days. This group is out pacing the second best performing sector, materials, by over 5% and is outperforming the average US stock by 10%. To add another layer of perspective, over the past 50 days US health care stocks are actually down over 1%.
This impressive nominal performance has led to some frothy market internal statistics. For example, 39% of US financial stocks have made new 50-day highs compared to just 15% of all US stocks. Only 5% of energy and health care stocks have made new 50-day highs.
