The bank stocks ripped higher as CNBC reported that the Federal Reserve was saying the bank capital surcharge would be around 2% to 2.5% instead of 3%. This causes a massive bounce in the markets, a buy program of sorts. This is one of the first buy programs lead by the bank stocks in months. Goldman Sachs Group, Inc. (NYSE:GS), Morgan Stanley (NYSE:MS) and Bank of America Corporation (NYSE:BAC) all went from the negative side to the positive side.
The bank stocks have shown signs of a bottom in recent days as they have all tagged massive support levels on their daily charts. In addition, it was clear something was up with them today. Early in the day, while the markets were dropping 1.5%, stocks like Goldman Sachs were on the flat line. Since the beginning of 2011, it has been extremely rare to see the financial plays as the strongest sector.
Gareth Soloway
InTheMoneyStocks.com
