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March 15, 2010

Banking on a Rally

Nothing particularly interesting happened today as markets await the latest babble from the FOMC. It is widely anticipated that our favorite cabal will remove the words "for an extended period" from their language regarding low interest rates. So, while the rest of the world obsesses over semantics, let's take a gander at another indication that this rally may yet have its best days ahead.

Banking stock index

I seriously doubt that if another bout of deflation were just around the bend that banking stocks would be breaking out. More likely, the conquest of a level with which these stocks have struggled for 6 months likely foreshadows a larger breakout coming in the general stock market.

 

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