By Gareth Soloway on April 14th, 2010 1:46pm Eastern Time
The financial stocks got off to a fantastic start today as JPMorgan Chase & Co. (NYSE:JPM) reported earnings. They beat earnings with ease and the stock responded by shooting higher. The financial stocks took off in sympathy, with Goldman Sachs Group, Inc. (NYSE:GS), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS) and Citigroup Inc. (NYSE:C) all surging to the upside.
The key now is to understand that JPM set the bar extremely high. All the other financial stocks that are surging today now must perform even better on their earnings to get a continued rise higher. This is one of the unique factors most amateur or average investors ignore. They do not factor in the rise in earnings expectations from a report on JPM. Using this method, it leads me to believe that the financial stocks may be getting to a near term top today. I am eying ProShares UltraShort Financials (NYSE:SKF) closely.
Be ready and understand how JPM has now put the bar at the top, these other financial stocks may have a tough time moving higher in the near term after today.
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Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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