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Watch JP Morgan for Bank Moves


Nick Santiago / InTheMoneyStocks.com

This morning, most of the leading financial stocks are trading higher to start of the day. Generally, as long as the financial stocks hold up and trade higher, the major stock indexes will remain buoyant. Should the leading financial stocks begin to rollover or sell off, all bets are off as the major stock indexes will often follow the financial stocks lower.

The most important financial stock that any trader can follow is J.P. Morgan Chase & Co (JPM). This financial giant should be called the "real" bank of America. When JPM stock declines it will usually take the entire industry group with it. Traders can look back to May 2012 when JPM declined after it incurred a massive trading loss, you can see how it took the entire financial sector lower during that time. This stock carries a lot of weight psychologically on the markets. Today, JPM is trading higher by 0.15 cents to $40.72 a share. Short term day traders should watch for intra-day resistance around the $40.90, and $41.35 levels. These levels will provide quick pullback trading opportunities. The daily chart of JPM remains in a trading range, the low range is around $39.25 and the high range is around the $42.75 level. Watch the daily chart or larger time frames for multiple day swing trade positions.

Some other leading financial stocks that are trading higher today include Citigroup Inc (C), Bank of America Corp (BAC), Deutsche Bank AG (USA) (DB), and Goldman Sachs Group Inc (GS). Earlier today, it was reported that Citigroup Inc is cutting 11,000 jobs worldwide, this news is helping the stock to trade higher by nearly 5.0 percent on the session.

Stock Watch:

Short term, day traders intra-day resistance at the $40.90, and $41.35 levels.
Swing traders, multiple day hold, daily chart resistance at the $39.25 level.

JP Morgan