MARKET CONTINUES TO ADVANCE -- CITIGROUP BREAK OUT LEADS FINANCIAL SECTOR -- CELGENE, GILEAD, AND AMGEN LEAD BIOTECHS HIGHER -- GOOGLE BREAKOUT PACES INTERNET UPTURN -- TOBACCO STOCKS PUSH CONSUMER STAPLE SPDR TO NEW HIGH
CITIGROUP PACES STRONG FINANCIAL GROUP... Financial stocks are having another good chart day. Chart 1 shows the Financials Sector SPDR (XLF) jumping to a new seven-year high today. Once again, banks are helping lead the way. Chart 2 shows the KBW Bank SPDR (KBE) nearing a new seven year high as well. Their rising relative strength lines (above charts) show market leaderhip since the start of the second quarter. Yesterday's bank leaders were Bank of America (BAC) and US Bancorp (USB) both of which are up again today. Today's leader is Citigroup (C).
(click to view a live version of this chart)
Chart 1
(click to view a live version of this chart)
Chart 2
CITIGROUP BREAKS OUT... The daily bars in Chart 3 show Citigroup (C) surging more than 3% today to a new high. And it's doing so on rising volume. Its rising relative strength line, which turned up in January, is also breaking out. The stock's longer-range picture is also promising. The weekly bars in Chart 4 show the stock now trading at the highest level in six years. Its relative strength line (solid line) has turned up during 2015 after two years of underperformance.
(click to view a live version of this chart)
Chart 3
(click to view a live version of this chart)
Chart 4
BIOTECHS LEAD HEALTHCARE SECTOR TO NEW HIGHS... Healthcare stocks have been market leaders all year, and remain so. Chart 5 shows the Health Care SPDR (XLV) hitting a new record high today. Its relative strength line (above chart) has been rising all year. Biotechs remain a main driver in the winning sector. Chart 6 shows Biotech iShares (IBB) also in record territory, as is its relative strength line. There's a good and bad side to that. Healthcare has traditionatlly viewed as a defensive sector. Biotechs, however, are anything but defensive.
(click to view a live version of this chart)
Chart 5
(click to view a live version of this chart)
Chart 6
CELGENE, BIOGEN, AND AMGEN ARE TODAY'S LEADERS... Three of today's top biotech gainers are shown below. Chart 7 shows Celgene (CELG) exploding into new record territory yesterday. Chart 8 shows Gilead Sciences (GILD) bouncing off its 50-day moving average to keep its uptrend intact. Those two stocks also happen to be the biggest holdings in Biotech iShares (IBB) shown in Chart 5. The third biggest holding is Amgen which is also having a strong day. Chart 8 shows Amgen (AMGN) rising above a falling trendline today, and attempting to break through its June high. Its relative strength line (above chart) is just starting to recover from a period of relative weakness. Amgen and Gilead are also two of the biggest holdings in the Health Care SPDR (XLV).
(click to view a live version of this chart)
Chart 7
(click to view a live version of this chart)
Chart 8
(click to view a live version of this chart)
Chart 9
GOOGLE LEADS INTERNET HIGHER... The Internet group has been leading the technology sector higher this week. The standout performer in that group is Google. Chart 11 shows Google (GOOGL) surging through its spring high to the highest level since last October. Interesingly, the stock has been a relative underperformer, as shown its falling relative strength line (above chart). The good news is that the stock's RS line has just broken a falling resistance line extending back to February 2014. Good absolute performance by the stock (upside breakout), combined with a relative strength line just starting to turn up, is a healthy combination.
(click to view a live version of this chart)
Chart 10
TOBACCO LEADS STAPLES TO NEW HIGHS... It's normally a sign of caution when consumer staples are one of the market's strongest sectors. But they are today. Chart 11 shows the Consumer Staples Sector SPDR (XLP) breaking through its first half highs to achieve an impressive upside breakout. Several groups are contributing to that upside breakout like drug retailers and food products. Tobacco, however, is today's biggest gainer. Chart 12 shows Altria Group (MO) surging nearly 4% today. Philip Morris (PM) is up sharply as well.
(click to view a live version of this chart)
Chart 11
