ASSET MANAGERS LEAD FINANCIALS HIGHER -- THAT INCLUDES NORTHERN TRUST AND BLACKROCK -- MATERIALS SPDR BOUNCES OFF CHART SUPPORT -- NEWMONT GOLDCORP AND FREEPORT MCMORAN LEAD IT HIGHER -- A WEAKER DOLLAR MAY BE BOOSTING COMMODITY MARKETS

ASSET MANAGERS LEAD FINANCIALS HIGHER...Financials continue to show new market leadership.  Most attention in that sector, however, is usually paid to bank stocks which are its biggest part.  Some other financial groups are also doing well.  Like asset managers which have been the strongest part of the financial sector over the last three months (while banks have been second best).   So we're going to focus on asset managers  which helped lead the Financial SPDR (XLF) higher today.

Chart 1 shows the Dow Jones Asset Managers Index having just risen above its spring high to reach the highest level in a year.  That constitutes a bullish breakout in a financial group that's been a market laggard for the last two years.  Its relative performance has also started to improve.  Its relative strength ratio in the upper box bottomed in late October and has been rising since then (see boxed area).  That's makes asset managers another relatively cheap group that's just starting to show new market leadership.

NORTHERN TRUST IN NEW UPTREND...Two asset manager leaders shown below are today's two biggest percentage gainers in the XLF. Chart 2 shows  Northern Trust (NTRS) trading at the highest level in more than a year.  The stock achieved a major bullish breakout during October and is now in a solid uptrend.  Its relative strength ratio (upper box) has turned up as well.

BLACKROCK ACHIEVES BULLISH BREAKOUT... Chart 3 shows Blackrock (BLK) having recently achieved a bullish breakout of its own.  Its relative strength ratio (upper box) also appears to have bottomed.

MATERIALS HOLD CHART SUPPORT... Materials stocks also had a strong day today.  And it came at a good time.  Chart 4 shows the Materials Sector SPDR (XLB) bouncing off trendline support along its July/September highs; and remains above its 50-day average (blue arrow).  Its relative strength ratio in the upper box shows the group lagging behind the S&P 500 so far this year.  But it's near the lowest level of the year which might start to provide some support.  It's starting to get some help from metal stocks.

NEWMONT GOLDCORP AND FREEPORT MCMORAN SHOW XLB LEADERSHIP...The two metal stocks shown below were the day's biggest percentage gainers in the XLB.  Chart 5 shows Newmont Goldcorp (NEM) rising above its October high to the highest level in more than two months.  That's a positive sign for that stock; and maybe for other gold miners and the yellow metal.

Chart 6 shows Freeport McMoran (FCX) bouncing off its 200-day moving average (red line).  The big copper miner recently backed off from a challenge of  its July peak; and may be getting ready for another try.  Its chart pattern has the look of a bottom being formed.  But it needs to clear its summer high to initiate a new uptrend.  An upside breakout would be a positive sign for the copper market which may also be bottoming.  A weaker dollar may be giving a boost to some commodity markets and stocks tied to them.