Overall, based on the charts and news, it appears the financial firms may have hit bottom. With new regulations, tighter oversight, lower profits and possible lawsuits in the billions, Goldman Sachs, Bank of America and Wells Fargo have all struggled. Just over the last two weeks, Goldman Sachs was trading sharply lower on the rumor that the bank would receive a subpoena over its part in the financial crisis. This subpoena finally arrived today with Goldman Sachs immediately spiking lower, hitting a major support at $131.50. At that point it reversed. To master the markets and get daily videos, research reports and swing trades, take the seven day free trial to the Research Center. Click here.
With so much bad news for the financial companies in 2011, they have been beaten with the ugly stick. However, with so much bad news, comes the light at the end of the tunnel. It appears based on the major support levels hit today on all bank stocks and the final subpoena to Goldman Sachs, a majority of the bad news is out or priced in. This spells a short term bottom in the stocks and a long opportunity. Look for these stocks to see upside over the next two weeks and maybe further. Free trial to the best stock analysis, trade alert service on planet earth. Click here.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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