Emerging in the Darkness

It has been a while since we have heard much of anything from shares of Goldman Sachs. Clearly, the spike lower in rates in recent months has served to undermine any excitement bulls may have had for most holdings in the KRE (regional banking) and XLF (larger cap financials) sector ETFs. 

But if Treasuries take a seasonal pause here allowing rates to inch back higher, I suspect it may be more than enough to allow quite a few financials to enjoy a summer rotation as tech, perhaps, consolidates a bit. 

Circling back to Goldman, note the bottom pane of the GS daily chart, updated below. We are seeing potential signs of buyers of size legging back into the iconic banking house. Clearly, bulls would need to see GS retake the $200 level, roughly coinciding with its 200-day moving average (yellow line) just above price in order to cement more of a serious turnaround. 

However, the increasing buy volume to close out last week is a promising sign that value players are finally taking a stand that Goldman has put in an interim low. 

Elsewhere, the ERI for CZR buyout, alongside the new WYNN Boston property opening, bodes well for casino stocks to take up here early this summer. We will take a much closer look at the group headed into July as they have been another part of the market, like financials, which have clearly taken a backseat for much of 2019, so far.