The Ultimate Stock Market Barometer Works Again
Often traders and investors look at so many different indicators and charts in order to try and gauge the stock markets. While all of this could be helpful it sometimes easier to just follow the stock market leaders. Right now, and really since 2007, the stock market has been in a financial crisis. The European bond market is in shambles with Greek yields surging higher everyday. Italy, Spain, France, and the rest of the European Union are facing the same problems. The problems is not actually with the countries but with the banks that hold bonds from those nations. Therefore, this is a global banking crisis.
The most important bank in the United States and possibly the world is J.P. Morgan Chase & Co.(NYSE:JPM). Yes, believe it or not, it is not Goldman Sachs Group Inc.(NYSE:GS) or Morgan Stanley(NYSE:MS) that are the leading financial stocks, it is J.P. Morgan Chase. Traders can just follow this financial giant as it has telegraphed the major stock indexes for quite a while now. The same technique could be used if you were looking to track technology. Traders would then follow Apple Inc.(NASDAQ:AAPL). We would track APPL stock because is the leading technology stock in the world right now.
JPM stock is trading lower by $1.30 to $33.54 a share this afternoon. When JPM stock declines or sells off traders must expect the S&P 500 Index and the Dow Jones Industrial Average to be weak or decline throughout the day. It is very rare to see the major stock indexes trade higher when the leading financial stock in the world is declining. Follow JPM stock to get the pulse and temperature of this stock market.