Friday, September 24, 2010


With financials lagging behind and dragging the overall markets lower, I figured it makes sense to have a look at the main financial stocks to try and get an idea of where they were headed. I have a hard time believing that the markets can go much higher without the financial stocks. I have commented on the charts itself. All the charts are pointing in just one direction. See for yourself.

So, all the above stocks look bearish. Pretty much all of them struggled with MA(50) or/and MA(20) today. The charts do look a bit oversold and I think a move up to either of the above mentioned moving averages would provide a nice opportunity to short these stocks. The nearest support is still some distance away and a move to the bottom of their trading ranges, though some distance away, cannot be ruled out. That said, it is the earnings season and I would recommend knowing when these stocks are reporting before taking any position in them. 

In case you missed it, here are the links to Chart of the Day and my overall market analysis.

Take care and good luck!

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