Seems like the market will rally from here. Financials is the clear winner finally.

Financials sector is leading the market rally. The DOW will break upwards and touch 11600 somewhere next week.

I think JPM is going to reach its previous highs of $48 in a couple of days.

The technicals are strong, coupled with the bullish fundamentals, I don’t see why fund managers who love to window dress not buy this.

There is strong demand for financials now. This is a result of SHORT COVERING and movement to Financials from overvalued Materials and Tech sectors.

JPM is the financial leader here. We should see JPM at $44 next week. That’s a 8% gain.

All in all, it has been a good trading week. Financials lead the way.

Tolits: Financials might be speculative but it is worth the risk given its massive underperformance this year.

Hedge funds like Paulson’s fund wants to continue showing good performance and since they own loads of financials, they will want to try to get others to pour money into this sector.

As dividends start to increase next year, FINANCIALS will be in huge demand. Just as bonds are in huge demand.