By Chief Market Strategist Gareth Soloway on December 31st, 2009 12:26pm Eastern Time
Over the last few days the markets have hovered flat as many sectors have pulled back. While technology and commodities seem to be stalling out, a few short term leader has emerged to take its place, keeping the market flat and not allowing it to pull back significantly. The financial stocks have stepped in to keep this market strong as they have roared higher the last few days. Stocks like GOLDMAN SACHS GRP (NYSE: GS), JP MORGAN CHASE CO (NYSE: JPM), WELLS FARGO & CO NEW (NYSE: WFC), MORGAN STANLEY (NYSE: MS) have all raced higher.
The financial stocks leading this market this week was actually not a surprise to me. In fact, going back as far as last weekend I made a call in my free Weekend Technical Analysis Video that is seen by tens of thousands around the world that the financial stocks would keep this market in check and steady into year end. How did I know this? That is what I will reveal to you all.
It really is not rocket science. That is the beauty of what we do here at InTheMoneyStocks.com. It is really just understanding and reading the charts accurately. Each chart is like a book. Each book says something. It is up to each and every once of us to learn the language and read it correctly. As noted last weekend in my free Weekend Technical Analysis Video, the financial stocks were all forming beautiful in spirit of Bull Flag patterns. From Goldman Sachs to Wells Fargo, they all had the perfect setup. In addition, technology and many other sectors had taken the market higher over the previous week or two. This left little doubt in my mind there was a high probability that they would be the sector to keep this market steady. We all know at this point the markets were not going to dump in a major way into the year end. Trust me, the government does not pump trillions into the market and the economy only to have it wither and die at year end. So the question was just which sector. Sure enough, financial stocks to the rescue.
Below is a chart of Goldman Sachs Grp (NYSE: GS), showing the in spirit of Bull Flag patterns I noted for free to the world last weekend. Enjoy the education. Live, Learn, Profit.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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