Financial Stocks enter Weinstein Stage 2

Financial stocks outnumbered all other sectors in this week's all-time high list. At the same time XLF, the financial sector ETF, broke through the resistance level I mentioned a few weeks ago. A retest of resistance is likely, but if it can close the month above the $17.00 neckline then it will be in the markup stage of its cycle (Stage 2 by Weinstein). Here is the chart of XLF showing what I mean:

One way to play this move is through UYG, the leveraged ETF, which would take advantage of money flow into the sector overall. Alternatively, there are financial stocks at all-time highs which should do well if the sector's tailwinds continue. Here are a few of the financials in this weeks list:

• EFC (Ellington Financial LLC | NYSE)
• HBCP (Home Bancorp | NASDAQ)
• TD (TD Bank | NYSE, TSX)
• BNS (Bank of Nova Scotia | NYSE, TSX)
• LB (Laurentian Bank | TSX)
• AD (Alaris Royalty Corp. | TSX)

Real market professionals ... base their decisions on market actions, not the news. - Stan Weinstein

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