As we said in last weeks "Chartology: Financial Stocks Are at a Decision Point (BAC; C; JPM; GS; WFC; XLF)":
The ETF closed at $16.40 yesterday and is showing some strength pre-market. It is very difficult to have a market rally without these guys at least being on board if not leading.Here's the latest from MarketBeat:
The S&P and DJIA futures are indicating higher, 'Buy the Dip' will work until it doesn't.
When the music stops try to grab a chair, this is a dangerous little game we're all playing....
Bank stocks started the week strong in Europe and the positive momentum is giving a boost to bank stocks in the U.S.See also:
Among the gainers: J.P. Morgan (+2.4%), Bank of America (+3%), Morgan Stanley (+2.2%), Goldman Sachs (+1.7%), Citigroup (+1.2%), Wells Fargo (+1.85%) and U.S. Bancorp (+2%).
Several reasons are being trotted out for the rebound in banking shares, including a ramp up in bank merger activity. KWB, a bank-focused investment bank and research shop, says it is “surprised” how high premiums have gotten for recent bank M&A deals, according to Dow Jones. KBW expects bank deals to continue to flourish....MORE
Where's the Money Going? "Sector Relative Strength: Recent Rotation" (XLF; XLE)
Susquehana Says: "Buy BofA and Wells Fargo Stock" (BAC; WFC; XLF)
More on Goldman's Top Trades 2011: "We Like Finance Stocks for First Time Since ‘08" (GS; BKX; XLF)