This morning, the large financial stocks that are considered too big to fail are staging another rally. This group of leading stocks have lead the major stock market indexes over the past five years. Earlier today, Morgan Stanley (NYSE:MS) reported earnings. The stock is trading higher by 0.72 cents to $17.38 a share. MS stock has a lot of daily chart resistance around the $17.50 – $18.00 area. As long as the financial stocks continue to trade higher the major stock indexes are likely to hold up.
Other market leading financial stocks that are trading higher this morning include Goldman Sachs Group Inc (NYSE:GS), J.P. Morgan Chase & Co (NYSE:MS), Citigroup Inc (NYSE:C), and Bank of America Corp (NYSE:BAC). All of these companies have reported earnings already. Investors have reacted positive to the earnings reports by these financial giants. These stocks were severely oversold and the expectations were very low, therefore, the bounce that these stocks are receiving is simply from an oversold technical condition on the charts. These stocks should have minimal upside from the current levels.
Nicholas Santiago
InTheMoneyStocks.com
