Did You Buy: Financial Stocks Rally Sharply
Banks are leading the market for the first time in weeks. News break, the market is rallying solidly for the first time in what seems to be weeks. This is no coincidence and most likely a key to further upside in the market. Goldman Sachs Group, Inc. (NYSE:GS) is jumping +2.99 to $134.58 (+2.27%) while Wells Fargo & Company (NYSE:WFC) is trading at $26.07, +0.71 (+2.80%) and Morgan Stanley (NYSE:MS) is at $22.55, +0.62 (+2.83%).
These are significant gains for the financial stocks which have been under continued pressure all year. Many banks are down close to 30% from their 2011 highs. Just recently, bank stocks have had an overload of bearish sentiment from analysts and the media. In addition, they have all hit major multi year pivot support lows. The fact that these all are coinciding leaves this pro trader to assume a bounce was coming. The bounce is here. It should last for almost a week, maybe longer on the financial plays.