The Only Financial Stock That You Need To Follow
J.P. Morgan Chase & Co (NYSE:JPM) is the most important financial stock that any trader can follow at this time. This stock has lead the major market indexes higher throughout the first three months of 2012 and now the same stock is leading the markets lower. JPM stock has come under some major scrutiny after reporting a $ 2 billion trading loss in its investment unit. The daily chart of JPM stock remains very weak as the stock has cut through the important daily chart 200 moving average. Short term traders should watch for intra-day support around the $35.00 level.
Some other leading financial stocks that should also be followed closely include Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS), and Deutsche Bank AG (USA) (NYSE:DB). Generally, these stocks will trade in tandem with each other, however, from time to time they can trade independently. All traders should remember that JPM is still the most important stock in the financial sector. Until JPM stock can rally it would be prudent to expect the rest of the financial sector to be relatively weak in the near term.