Legg Mason (LM) just flashed a golden cross.
As we can see XLF broke out in January while LM has been a laggard.
Will momentum traders start playing the ‘lagging financials’?
The golden cross (technical formation when the 50-day moving average rises above 200-day) can be used as a filter to help narrow down the field. Next, use the Seven Steps to Better Stock Trading to evaluate the sentiment and price action. Better yet, sign up for The Select 20 Stock Picks or use my free Total Indicator for eSignal.