Bearish Sentiment Signals Near Term Bottom on Financials: GS, BAC, C, JPM, MS

Banks have been punished all year long. After making highs in early 2011, stocks like Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C) have all come crashing down. Goldman Sachs hit a high of $175.34 in January before selling off to its recent price of $133.25. Both Bank of America and Citigroup have performed equally as poorly as have others.

There is a persistent fear of massive new regulations coming to the financial institutions in the next few months. These upcoming regulations sparked a question by Jamie Dimon from JPMorgan Chase & Co. (NYSE:JPM) to Ben Bernanke yesterday during his speech. The question essentially spoke to the possibility of these new regulations causing banks not to lend.  In addition, Dimon brought to the forefront the possibility that if the banks do not lend, a new recession may begin. Get the latest on the bank stocks.

There is a plethora of negativity on the banks. They have sold sharply in recent months and continue to be under pressure. Many of these stocks are into key technical levels reached in the last few days.

The bottom line is this. The combination of these technical levels and the crescendo of negativity probably dictate a near term solid bounce. Long plays can be initiated in this general vicinity on stocks like Bank of America, Citigroup, Morgan Stanley (NYSE:MS) and others.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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