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Financial Stocks & Industrial Metal Stocks Trade Lower, Which Is Worse?



October 13, 2011 – Comments (0) | RELATED TICKERS: C , BHP , X

This morning, the leading financial stocks and the leading industrial metal stocks are declining. These two sectors have been weak since April 2011. This morning, the financial stocks are trading lower after the financial giant J.P. Morgan Chase & Co (NYSE:JPM) reported earnings. Traders and investors obviously did not really believe the results posted by the company. JPM stock is trading lower by $1.53 to $31.67 a share. Other leading financial stocks such as Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS), and Citigroup Inc (NYSE:C) are all trading lower on the session. It is fair to say that the financial stocks are extremely weak.

The industrial metal stocks are also trading lower this morning. Leading industrial metal stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), U.S. Steel Corp (NYSE:X), Southern Copper Corp (NYSE:SCCO), and BHP Billiton Ltd (NYSE:BHP) are all declining. This sector is also extremely weak at this time. If traders and investors look at the charts of both sectors you will easily see that the financial stocks and the leading industrial metal stocks have very similar chart patterns. This tells us that both of these sectors simply trade higher when the stock markets have inflation. When the stock markets deflate these two sectors seem to decline simultaneously. Therefore, both sectors are in poor shape right now, however, they will both benefit from inflation which is usually created by the central banks.

Nicholas Santiago

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