Financial Stocks Play Leader Of The Pack
This morning, the major stock indexes have opened sharply lower to start the day. All of the leading sectors are trading down except the large financial stocks. The too big to fail financial stocks have actually rallied right from the opening bell. Traders should remember that the financial stocks are the leading industry group to follow. If this group of stocks begins to rally, that would be positive for the overall markets. Should these stocks begin to break below the opening lows that would indicate further declines for the major stock indexes.
J.P. Morgan Chase & Co.(NYSE:JPM) opened the day around the $36.23 a share. In the first ten minutes of trading day the stock filled the gap from Friday trading as high as $37.72 a share. Traders can expect extreme volatility and wide intra-day swings. Should JPM stock somehow rally it would be a signal that the stock market might be close to a bounce from an extremely oversold condition.
Other leading financial stocks that are trading higher from the gap lower open include Wells Fargo & Co.(NYSE:WFC), and Goldman Sachs Group Inc.(NYSE:GS). These stocks will have wide intra-day swings. Therefore, traders must expect the added volatility when panic comes into the markets. If the financial stocks begin to lead the markets higher it is possible that a bounce will take place in many other sectors. Traders should watch the leading financial stocks very closely today.