Patience Is A Virtue Indeed

I got some stick regarding my comments about which sectors are going to lead us slowly higher. But today is a good example why I think I am going to be right. The SPX is buoyant one more time (flirting again with the 1225 overhead resistance level against which it has been banging for a while now, but which level I think the SPX is going to break today), and is being led by blue-chip big cap names such as GE (essentially a financial company because of GE Capital), Citibank (the biggest financial company in the world), Bank of America (another financial behemoth), INTC (through its fresh $25bn stock buyback and dividend raise) and my favorite retail stock WMT (which I had "banged the table on" several weeks ago). The sectors which are lagging are energy (again!) and autos (GM -- what a disaster, it's maybe even time for distressed players to take a look at this, methinks!).

To make a long story short, like it or not, we are rallying. And the stocks that are leading us higher are exactly the stocks that should lead us higher (the XLF {financials sector ETF} is continuing to do well) -- the big blue-chip names with tons of earnings and cash. What is even more important is that they have actually assumed leadership from the energy stocks (which are continuing to see heavy selling due to their prior outperformance, earlier this year). Don't get me wrong -- it's not going to be a "home run" type of rally, it's just going to be a slow, almost boring tape that rallies because... it can! No new bad news or the absence of any news, period, is actually GOOD NEWS, this time of the year!