On the two year anniversary of the market bottom, stocks are swinging from negative to positive back to negative and now inching back to the positive side. The SPDR S&P 500 ETF (NYSE:SPY) just hit the highs of the day at $132.80. These wild swings are based on bubbling issues in Europe again, fear in the Middle East and a constant eye on crude oil. As the markets have moved back towards the positive side, it appears financial stocks are starting to lead again. Yesterday, news that Bank of America Corporation (NYSE:BAC) was doing a dividend hike and share repurchase became the catalyst for a the rally. All financial stocks jumped higher and took the broader market along with it. The bank stocks are starting to run higher today again. JPMorgan Chase & Co. (NYSE:JPM) has surged higher, now trading at $46.95, +0.55 (+1.19%) while Goldman Sachs Group, Inc. (NYSE:GS) is trading at $163.65, +2.35 (+1.46%).
The financial stocks are back in favor and surging higher. The Bank Of America news yesterday gives Wall Street hope these banks can continue to build on profits even after the Federal Reserve is done with their print money quantitative easing policy. While the bank stocks look strong today, the majority of the easy money short term has been made. Wait for pull backs. To gain more hardcore guidance, analysis and swing trades, join the Research Center. Take a one week free trial today.
Chief Market Strategist
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