Financials Catch Morning Bid, Can It Last?

This morning, the all of the leading financial stocks are trading higher. When the financial stocks rally it is usually a good sign that the major stock market indexes will hold up. Traders should follow Financial Select Sector SPDR (NYSE:XLF) closely. The XLF has started higher by 0.16 cents to $12.73 a share. Short term traders should watch for intra-day resistance around the $12.75, and $12.90 levels. If the XLF starts to retreat from the morning highs it is a good chance that the stock market indexes are going to give back the early morning gains.

Morgan Stanley (NYSE:MS) is a leading financial stock that is trading higher by 0.26 cents to $93.51 a share. Earlier today, Morgan Stanley announced plans to layoff 1,600 employees. This action is usually beneficial for the stock price in the short term. Traders should watch for intra-day resistance around the $15.65 area. Should the stock rollover later today there will be intra-day support around the $15.00, and $14.50 levels.

Deutsche Bank AG (NYSE:DB) is the one of the most important European bank stocks that traders can follow. The stock has already began to fade from the gap higher open. DB stock is trading higher by 0.75 cents to $36.24 a share. Traders should watch intra-day support around the $35.50 and $34.75 levels. This stock will remain very volatile as the European crisis remains from and center.

All traders should watch the financial stocks very closely. After all, this is a financial crisis that is taking place at this time. We all know the old saying, follow the money. The financial stocks are the money at this time.

About Nicholas Santiago 575 Articles


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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