XLF - As 52-week highs pile up it may be time to get more bullish: Alpha Tactics

The major stock averages had a strong week across the board, despite Treasury yields that hit levels not seen in more than a year.The S&P 500 (SP500) (SPY) ended the week 2.7% higher, with the Nasdaq (COMP) (QQQ) gained 3.1%, the Russell 2000 (RTY) (IWM) jumped 7.4% and the Dow (DJI) (DIA) gained 4.1%.The 10-year Treasury yield rose 10 basis points to 1.63%.As the rotation trade now brings cash into the sectors that benefit from higher rates and reopening and recovery expectations, the number of stocks hitting new 52-week highs is broadening.And that’s good news for bulls, according to Renaissance Macro Research.“The danger when 52-week highs are prolific....is not being BULLISH!” RenMac tweeted.In the chart below, the red distribution shows 3-month forward returns for the S&P after 52-week highs are above 20% vs. all other three-months returns, going back to 1927.The percentage of NYSE stocks hitting new 52-week highs hit

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As 52-week highs pile up, it may be time to get more bullish: Alpha Tactics