The Banks Are Running In Mud


Everyone is talking about the big bad head and shoulder pattern that is developing in $JPM. It’s true there is one, but remember that more of these patterns end up turning higher and never breaking the neckline, I’m not saying $JPM wont crash and burn, but less and less of these patterns have been validating lower, especially in a bullish tape. Yes its a bullish tape even though we are in correction mode.

The top 5 holdings in $XLF are: $BRKB, $WFC, $JPM, $BAC and $C

Here’s where they sit right now:

$BRKB– has broken the 50 day but is coming in to good support at the 113-114 level

$WFC has broken the 10, 20 and 50 day moving avg, and is sitting right on 100 day MA. Support 41 area.

$JPM has broken all of its moving averages and is sitting right on its 200 day moving average which happens to be my fave moving avg. for support reasons. A move to 47 is possible if it breaks 200 day with volume.

$BAC  has broken its 10.20 and 50 and is about 20 cents away from its 100 day MA.

$C  has broken it 10, 20 50 and 100 day moving average. The chart is very heavy and support comes in around 47-48 which is around its 200 day moving average. Support 46-47

When the tape gets iffy, this group is the first to go. It’s a momo market right now, so these names get kicked to the curb in favor of the $TSLA $YELP types names. Select biotech is on fire too.

Good luck and come by for a free trial here.

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