In an attempt to recapture the sharp losses on the day, Goldman Sachs Group, Inc. (NYSE:GS) ripped higher, charging to the positive side. All day it has been interesting to watch this stock. Known as a market leader and leading indicator, it was never down that much while other financial stocks like JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) were all down huge on the day. The relative strength in Goldman Sachs was a great indicator for a possible sharp move off the lows. The Dow Jones Industrial Average was down more than 150 points while it now sits down just 60. While the Goldman Sachs move is solid, it cannot lift the market to the positive side all by itself.
There are other leading stocks that must now participate. JPMorgan is one of them. This needs to fight to the flat line and turn positive for the market to have any shot of reversing all of todays losses. In addition, Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are major leading commodity plays. They are still negative on the day, though also showing some signs of buyers stepping up. Keep a close eye on this market. After Jobless Claims that were ugly, ISM and Homes Sales numbers that shocked, sentiment is extremely negative. Prime for a possible reversal short term in my opinion. For more in depth analysis, swing trades, guidance and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
