The DXY remains above support with improving upside momentum. On the other side of the coin, we have the EURO hitting our initial target at 1.115 and remaining in a firm downtrend. Momentum remains very weak.

The Invesco Solar ETF (TAN) recently pulled back 11% and found support from where we believe a rally is starting to take place with the potential upside of +19%. At the individual stock level, our three favorite long ideas are First Solar (FSLR), Jinksolar (JKS) and Enphase Energy (ENPH).

Short-term, the S&P 500, Nasdaq Composite and Russell 2000 pulled back to zones where we should see prices starting to hold and turn up from. The intermediate to long-term trends remain positive and we maintain our bullish view. We also remain bullish the Midcaps and would look to buy near-term weakness in the MDY.

The driver for the idea is the strong multi-factor model score for VZ of 5.65 vs. that for T at -6.1. The ratio chart below has a bullish setup as it has just broke the downtrend off the January high.

CXO - Short Idea - Target of 100.92.

Short Idea MPC - Target Price of 55.30.

The DXY is making its way above an important resistance area, and we expect it to trade higher from here.

For the purpose of generating long ideas in the financial sector outside of the U.S., we screened and ranked the 192 stocks in the iShares Global Financial ETF (IXG). In this list we find 67% of the stocks making a 1-month relative high vs. the IXG with 55% in a confirmed absolute uptrend and another 25% on the verge of confirming an uptrend. We are measuring an uptrend using a long-term smoothing, the 40-week moving average. When we look at these stocks relative to the IXG, we find 37% in a relative uptrend. For investors needing to have exposure in this sector, we offer a number of stocks with very favorable absolute and relative trends in place.

After ranking and screening the components of both the Financial Select Sector ETF (XLF) and the Regional Bank ETF (KRE), we present 24 long ideas that we like right here. Each chart has a long-term view and is measured relative to the S&P 500. A number of these stocks have recently broken above multi-month downtrends off the 2018 highs and a turn up in relative performance.

Not much has changed in a week. Upside momentum remains firm and we have a number of indices above their 40-week average. Although most of the U.S. indices reviewed are overbought short term, it’s a “good overbought” where any weakness is short lived and met with more demand.

We are taking a long position here with the expectation that momentum remains firm and we can see a move above $1350.

The DXY has pulled back to an important zone where the probability of a rally is 80%.

Our upside target has been achieved and we are taking profit on our longs and putting on a tactical short. Comments on chart below.

Copper has cleared a big resistance area at 2.86 which open the upside target of 2.97. 

Not much has changed in a week. Momentum continues to build, and we have the S&P 500, Nasdaq Composite, Mid Cap (MDY) and Dow Transports making their way above their 40-wk. averages.