SHORT NOTE ON FINANCIALS

When you have a second, go check out yields as they move off their lows today. Yields had been drifting lower. Maybe a short term turn has been made as yields start to head higher. So what happens? FINANCIALS get going again. There remains a direct correlation between big and medium financials and yields. The thought process is if yields on the long end head higher, margins expand. Margins expand…profits expand. Profits expand…the underlying stocks go up. The connection remains. How far/ Don’t know! How long? Don’t know. Best looking? C, BK, CMA. Most are much lower in their bases but most have held the support going back many months. Stay tuned!