Large Banks Defy Gravity
The strongest industry group in the stock market since June 2012 has been the large banks. Today, the large bank stocks are trading higher again. J.P. Morgan Chase & Co (NYSE:JPM) is by far the most important stock in the sector. This stock has surged higher by nearly $16.00 since June 4, 2012 when the stock was trading as low as $30.83 a share. Traders should start to call JPM stock the real bank of America. The stock is now starting to trade into some important resistance around the $48.00 area. There should also be heavy resistance around the $50.00 area as well should the stock trade up there. JPM is also overbought in the near term so pullbacks or consolidation on the daily chart should be expected a little bit higher.
Some other leading financial stocks that are climbing higher today include Deutsche Bank AG (USA) (NYSE:DB), Citigroup Inc (NYSE:C), Wells Fargo & Company (NYSE:WFC), and Bank of America Corp (NYSE:BAC) just to name a few. Traders can follow the entire sector by using the Financial Select Sector SPDR (ETF) (NYSEARCA:XLF). Remember, the trend remains up in all of these stocks, however, the sector is now getting overbought in the near term.