GETTING DEEP INTO THE FINANCIAL SECTOR
It's time to take a very hard look at what has transpired this month in the financial sector. Earnings of the major occupants in the banking and investment banking sectors have been released. Lo and behold we're all still here, with all major limbs attached and functional.
Once earnings season is out of the way here shortly, there will come a point of realization and enlightenment by market participants. I feel that the realization and enlightenment phase has already started in financials. You can see it in the price patterns and the way companies are avoiding the worst case scenarios on the downside by running away to the upside. The charts below will explain the concept in further detail.
In a market where things change so drastically on a day to day basis, financials suddenly seem like they may be setting up to take the lead heading into November. The action today was very constructive.
Let's look at the major financial companies:
MS
GS
JPM
C
BAC
