Financial Stocks May Start To Lead The Market This Week (NYSE:GS), (NYSE:JPM)
The markets continue to move higher as I had predicted, after the bottoming tail on February 5th, 2010, I start to look for new leadership. That leadership may come from financial stocks that have been muted of late. Today, Goldman Sachs Group, Inc. (NYSE:GS) and other stocks are starting to show some leadership. Talk over the weekend that the Volker Rule, harsh regulations on financial institutions may be losing steam. In addition, since President Obama really attacked the banks and the markets tanked, he has been dead silent. Since his silence, the banks have started to put in a short term bottom.
With Goldman Sachs higher by almost 2%, JPMorgan Chase & Co. (NYSE:JPM) is also jumping over 2% as are the other banks. Any dent in the possible regulation of these entities could cause a big move higher. Goldman Sachs looks to close the day above the daily 20ma. Should it do that, a clear path is enabled from the current $156.50 level, all the way to $161.00. This happens to be a neck tie and a very serious resistance level.
The markets are having a strong day today, after Friday's big reversal. Friday the markets started off with steep losses, only to surge back and close at the highs of the day around the flat line. Being a bullish signal for today, the markets took the nod and have surged. Last week and today the commodity stocks have rebounded. Stocks like United States Steel Corporation (NYSE:X) have jumped over $8.00 off their recent lows. At this point they look to be getting very extended and could pause. This leaves room for the money flow to head to the financial stocks like Goldman Sachs and JP Morgan Chase. Watch these closely in the coming days.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Source: Pro Traders Rant & Rave Blog:
https://www.inthemoneystocks.com/n_rant_and_rave_blog.php
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