By Gareth Soloway on June 14th, 2010 12:22pm Eastern Time
Financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Bank of America Corporation (NYSE:BAC) have had a lot of trouble rallying over the last few days as the market has shot higher. This is partly due to financial regulation on the horizon among other issues. Any way you cut the action in the financial stocks, unless they participate and do so soon, this rally may be very short lived. The markets cannot have a sustainable rally unless financial stocks are moving higher. Goldman Sachs is the barometer. The three day rally in the markets has seen Goldman Sachs stay flat. Three trading days ago, Goldman Sachs closed at $136.80. It trades today at $135.78, down just over $1.00. If this stock goes, the markets have more legs.
The recent rally has been simply a Euro up, Dollar down rally which has seen commodities stocks rip higher in dramatic fashion. The markets hit a key double top today from June 3rd, 2010. Unless the financial stocks pick up the slack and participate, this market will stall here. To get more information, analysis, guidance and swing trade calls, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStock.com
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