Financial Stocks Weak Again: FOMC Heads Up?
Yesterday, I touched on the financial stocks and their relative weakness as the market was rallying. Today again, the financial stocks are weaker than that market. Is this a false signal or a valid heads up of a market sell off on the FOMC comments at 2PM ET?
Goldman Sachs Group Inc (NYSE:GS) is trading at $162.90, -1.25 (-0.76%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $54.02, -0.09 (-0.17%).
If the Federal Reserve were to make love to the stock market by extending QE indefinitely, one would think the financial stocks would be leading the market instead of lagging. Let’s see what happens at 2PM ET.
Forget The Bernank, Day Traders Follow The Technicals
NASDAQ:STX, NASDAQ:WDC, NASDAQ:TTEK, NYSE:MW, NYSE:FDX
As you all know, every trader and investor in the world is waiting for the Ben Bernanke press conference this afternoon. Will Mr. Bernanke hint that a cut in quantitative easing is underway? The answer is, who cares what he says! As traders we simply want to react to the price action. If the markets sell off, then we want to find a level that looks attractive to buy stocks. On the flip side, if the market rallies then we want to find a level where there will be major resistance and sell it. Traders should not be bullish or bearish, you simply just want to be on the correct side of the tape. If you are wrong then you want to be wrong small, that is why you must have a stop loss.
While most traders are sitting on their hands today, we are making money in the first ten minutes of the trading session. Today, the InTheMoneyStocks Intra Day Stock Chat room we bought Tetra Tech Inc (NASDAQ:TTEK) at $22.75 and sold it around $23.25 for a quick 0.50 cent profit. This is how a day trader operates. Day traders don’t care about Ben Bernanke or anyone else. Day traders care about major support and resistance levels. Some other potential intra-day trades that the InTheMoneyStocks traders are stalking include Seagate Technology Public Limited Company (NASDAQ:STX), Western Digital Corporation (NASDAQ:WDC), The Men’s Wearhouse, Inc. (NYSE:MW), and FedEx Corporation (NYSE:FDX). Learn how to navigate the charts and become free from all of the external market whipsaw. Enter the live trading room right now for free, click here.