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Large Financial Stocks Send Mixed Signals



July 15, 2011 – Comments (1) | RELATED TICKERS: JPM , XLF , BAC

The large financial stocks have been some of the weaker stocks over the past three months. This morning, Citigroup Inc.(NYSE:C) reported earnings that were better than expected. Citigroup stock is trading higher by 0.81 cents to $39.82 a share. Yesterday, J.P. Morgan Chase & Co.(NYSE:JPM) reported earning that were well received by investors in the early part of the trading day. The daily charts of all the financial stocks still remain very poor. All of the 'too big to fail' stocks still remain below their daily chart 50 and 200 moving averages which puts this sector in a weak technical position. Even this morning, JPM and Citigroup have faded sharply from the opening bell. This is not a good sign of strength for the markets.

Some other leading financial stocks that are fading from the opening bell include Goldman Sachs Group Inc.(NYSE:GS), Wells Fargo & Co.(NYSE:WFC), and Bank of America Corp.(NYSE:BAC). Short term traders can watch for intra-day support on JPM around the $39.60 level. It is prudent to keep a close eye on the financial stocks as these stocks have been leading the markets for months now.

Nicholas Santiago

1 Comments – Post Your Own

#1) On July 15, 2011 at 11:11 AM, davejh23 (< 20) wrote:

Citigroup's earnings report was terrible...once again, they only beat expectations by raiding loan loss reserves.  Excluding the $2 billion taken from loss reserves and counted as income, earnings were down 50%+ YoY.  IB and trading income was down 30%.  Their M&A business grew 60%, but this side still only represents 5% of revenue. 

The 20% decline in the last 6 months was absolutely justified, and it probably has another 25% to go.

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