SMO Exclusive: Strength Report Financial Sector 2024-02-07

Brian Degracia

07 Feb 2024 • 4 min read

Banking contagion danger from NYCB? For 2 weeks straight Banking has weakened 1 level. More 2/7/24 detail in the attached Financial Sector Strength report which includes the Strongest- and Weakest-rated Stock Market Organizer stocks and objective strengthening/weakening measurements for the Banking, Financial Services, Insurance, and Real Estate industries.

Will this Banking weakening continue? No one knows. What I do know is that it currently is weakening, and that there are still several strength levels through which it can further weaken to get to Weakest (9th strongest of 9 levels).

Nothing says it will weaken that much. But this system is built to catch when the weakening turns to strengthening.

No, this won’t help you bottom-tick anything.

What will? Nothing. Reliably, at least.

But the journey to 100% moves begins with 10% moves. And the journey to a multi-month rally begins with one up week.

HIGHLIGHTS
🔹 Banking (95% negative stocks) and Financial Services industries weakened
🔹 Insurance is strongest industry at Stronger (3rd strongest of 9 levels)
🔹 Real Estate (81% negative stocks) is weakest industry at Average (5th strongest)
🔹 Foreign Regional Banks and Life Insurance are strongest sub-industries (Very Strong, 2nd strongest)
🔹 Healthcare REITs is lowest rated sub-industry at Weaker (7th strongest)
🔹 Strongest:Weakest stocks Banking 11%:1%, Financial Services 45%:10%, Insurance 55%:7%
🔹 2 of 27 (7%) sub-industries strengthened, 16 of 27 (59%) weakened

SO WHAT?
Through tracking strengthening/weakening from the individual stock through overall market levels, what does this tell you?

🔹 The strongest stocks in each industry so you can see if there are better options than whatever you may currently own.

🔹 How all stocks in each sub-industry and industry compare in terms of current strengthening and weakening. These relationships may not continue, but it’s hard to meaningfully discern where you could go if you don’t know where you currently are. With this, quickly see the best and worst stocks and ignore the rest.

🔹 Whether sub-industries and industries are currently strengthening – does their action support new entries or is it better to wait?

This cannot guarantee profits. The market is no one’s ATM. But…

It aligns with the concepts that
THE STRONGER YOUR STOCKS, THE GREENER YOUR P&L, and
IT DOESN’T HAVE TO BE SO COMPLICATED.

This report may particularly be of interest if the following 5 concepts resonate with you:

The stronger your stocks, the greener your P&L.
The journey to 100%+ returns begins with 10% returns.
The journey to a multi-month rally begins with one up week.
Most stocks do what the market does. (While the market can only do what its underlying stocks, sub-industries, and industries do.)
80/20: not all information is created equal. (Press buttons, not balloons.)

Following are galleries with page-by-page views of this report.