If The Financial Stocks Slide, You Should Watch Out!
Nicholas Santiago | Dec 05, 2012 12:01PM ET
This morning, most of the leading financial stocks are trading higher to start of the day. Generally, as long as the financial stocks hold up and trade higher, the major stock indexes will remain buoyant. Should the leading financial stocks begin to roll over or sell off, all bets are off as the major stock indexes will often follow the financial stocks lower.
The most important financial stock that any trader can follow is J.P. Morgan Chase & Co (JPM). This financial giant should be called "the real" bank of America. When JPM declines it will usually take the entire industry group with it. Traders can look back to May 2012 when JPM declined after its massive trading loss, you can see how it took the entire financial sector lower. This stock carries a lot of weight psychologically on the markets.
Today, JPM is trading higher by 0.15 cents to $40.72 a share. Short-term traders should watch for intra-day resistance around the $40.90, and $41.35 levels. The daily chart of JPM stock remains in a trading range, the low range is around $39.25 and the high range is around the $42.75 level.
Some other leading financial stocks that are trading higher today include Citigroup Inc (C), Bank of America Corp (BAC), Deutsche Bank AG (USA) (DB), and Goldman Sachs Group Inc (GS). Earlier today, it was reported that Citigroup Inc is cutting 11,000 jobs worldwide, this news is helping the stock to trade higher by nearly 5.0 percent on the session.
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