Large Banks Defy Gravity

The strongest industry group in the stock market since June 2012 has been the large banks. Today, the large bank stocks are trading higher again. J.P. Morgan Chase & Co (NYSE:JPM) is by far the most important stock in the sector. This stock has surged higher by nearly $16.00 since June 4, 2012 when the stock was trading as low as $30.83 a share. Traders should start to call JPM stock the real bank of America. The stock is now starting to trade into some important resistance from February 2011 around the $48.00 area. There should also be heavy resistance around the $50.00 area as well should the stock trade up there. This stock is also overbought in the near term so pullbacks or consolidation on the daily chart should be expected a little bit higher.

Some other leading financial stocks that are climbing higher today include Deutsche Bank AG (USA) (NYSE:DB), Citigroup Inc (NYSE:C), Wells Fargo & Company (NYSE:WFC), and Bank of America Corp (NYSE:BAC) just to name a few. Traders can follow the entire sector by using the Financial Select Sector SPDR (ETF) (NYSEARCA:XLF). Remember, the trend remains up in all of these stocks, however, the sector is now getting very overbought in the near term.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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