Financials are firmly in charge right now!

6 Ara 2019

December is full of the swing as we push toward the end of 2019. For now, bulls seem to be continued, the market got hit hard in earlier this week but bounced back into the edge of their expected moves referenced from options chain. So the question at this point is neither the trade war or other economic mixed quotes nor if you should being bullish/bearish right now, it's about understanding the risk that persists on the stake as the market keeps buying it.

Financials, the fundamental of all broader markets are just hanging there and driving more and more order flows into the market, and the bonds which drive the financials are heading on a slight downtrend right now.
Strong stocks getting stronger for a couple of reasons. First, they rely on sector strength. Those sectors in lead with those stocks making new highs usually give us a sense of market participation, which is preparing us the opportunities to buy.
On Thursday session, among those money center bank stocks, 14 out of 24 post gains according to Finviz stocks screen tools. So I picked JPM for the pitch which just broke out of a rising trend line, the bull trades with few gaps up in the most recent trading session demonstrated some bull flags and that seems an opportunity to buy for now.
But keep in mind, on the other aspects, financials along with the SPY are a little bit shy of their All-Time highs which means they are also in a danger zone. Since the three major indexes are on the lower edge of their expected move, if there is a trip to go a further down then they will go down widly. So traders must prepare for a much more substantial down that could occur when the volatility has not necessarily subsided.