As Long As The Banks Pop, Markets Will Not Stop
This morning, the leading bank stocks are all trading higher on the session. This move in the large financial stocks is giving investors and traders confidence to step in and buy the major stock indexes. When the large financial stocks decline or trade lower it is a sign that confidence is eroding in the marketplace.
J.P. Morgan Chase & Co.(NYSE:JPM) is the leading bank stock in the United States. This morning, JPM stock is trading higher by 0.93 cents to $36.84 a share. As long as this stock continues to trade higher throughout the trading session it would be prudent to expect the major stock indexes to remain strong. Should JPM stock begin to come under selling pressure traders should expect the market indexes to pullback as well.
At this time, JPM stock and the large financial companies are essentially the stock market. The European Union crisis is really a banking crisis. The large financial stocks have indicated exactly where the markets were going to trade before the recent decline. Traders should continue to follow the large financial stocks very closely. Some of the other large financial stocks that are trading higher this morning include Goldman Sachs Group Inc.(NYSE:GS), Morgan Stanley(NYSE:MS), and Bank of America Corp.(NYSE:BAC).