Financials Rally Early, Can They Hold Up?
This morning the leading financial stocks are trading higher on the session after the coordinated central bank liquidity announcement. As we all know by now, when the financial stocks rally the stock markets will usually trade higher as well. After all, this is a global banking crisis since late 2007.
Traders should simply follow one stock very closely today, that stock is J.P. Morgan Chase & Co.(NYSE:JPM). This stock is the leading financial institution in the United States and possibly the entire world. When this stock declines the markets will most likely follow. The daily chart of JPM still looks very poor on the charts. The stock is trading below its daily chart 50, and 200 moving averages which put the stock in a weak technical position and a confirmed down trend. Until JPM's stock can recapture the daily chart 50 major moving average it is very sensitive to another sell off. Today JPM is trading higher by 0.56 cents to $33.36 a share. The stock will have intra-day support around the $32.50 area should it decline from its current level in today's session.
Other leading financial stocks that are trading higher today include Goldman Sachs Group Inc.(NYSE:GS), Credit Suisse Group (NYSE:CS), and Deutsche Bank AG (NYSE:DB). All of these stocks are very important to follow at this time, however, JPM stock will tell us everything we need to know.