After a multi-week slump, financial stocks finally took off and led last week’s gains. Given how badly they’d underperformed since mid-September, any marketwide bullish tide should continue to prove very fruitful for the group.
On the losing end of the spectrum were health care stocks, though they still ended the week with a small gain.
Here’s a look at how each sector has been accelerating or decelerating since the late-April top. The remaining upside for the financial sector is clear here. And, it’s also clear with this graphic that telecom remains stretched thin.
No major surprises here, considering the leading and lagging sectors. Banks blazed the trail for financials, and biotech pulled health care stocks lower.
That said, some of the best and worst from last week are newcomers… and made big reversals that may be the beginning of trade-worthy trends. Take the 13% pop from the construction materials group for instance, which is still one of the biggest losers from any prior timeframe. Conversely, broadcasting stocks finally got knocked off their bullish perch, yet still have plenty of room to slide lower.