And the timing couldn’t be better. From a seasonality standpoint, we’re entering the window when equities have historically done their best work.
Looking back to 1950, December has been a consistently positive month for the S&P 500. What’s most interesting, though, is when those gains tend to show up.
The bulk of the move usually happens late in the month — exactly where we are right now.
So if the market finishes the year on a high note, it wouldn’t be surprising at all. It would be right on script.
Within that backdrop, banks have been one of the most consistent pockets of strength all year.
Across the U.S., Europe, Japan, and Canada, bank stocks continue to act like leaders, not laggards.
One setup that stands out right now is Customers Bancorp $CUBI.
CUBI is pressing right up against the upper boundary of a multi-year base. Buyers continue to absorb overhead supply, and price refuses to back away from resistance.
That’s exactly what you want to see.
The longer a stock consolidates near the highs of a range, the greater the chance it will eventually break out.
