Stocks have been unable to gain any real upside traction and remain stuck below critical resistance areas. On Tuesday, the market once again tumbled, led by the consumer discretionary and financial sectors. #-ad_banner-#Year to date, financials are flat, lagging behind utilities, basic materials and health care stocks, but outperforming technology. As the largest industry in the economy, the financial sector — which includes brokers, banks and insurance companies — matters a great deal to the tone of the overall U.S. stock market. Taking note of how big financial stocks trade is important to understanding the trend in the… Read More
Stocks have been unable to gain any real upside traction and remain stuck below critical resistance areas. On Tuesday, the market once again tumbled, led by the consumer discretionary and financial sectors. #-ad_banner-#Year to date, financials are flat, lagging behind utilities, basic materials and health care stocks, but outperforming technology. As the largest industry in the economy, the financial sector — which includes brokers, banks and insurance companies — matters a great deal to the tone of the overall U.S. stock market. Taking note of how big financial stocks trade is important to understanding the trend in the broader stock market. On top of my watch list, Morgan Stanley (NYSE: MS) has a permanent spot on one of my eight monitors. It is one of my go-to stocks because it often gives me clues as to the broader market’s near- to medium-term direction. I check the trading action in MS at least three to four times a day, because more often than not, any sharp reversal or relative strength or weakness in the stock can quickly infect the broader market. On an intraday basis, it rarely pays to short stocks when financials are strong, nor does it make… Read More