Bank Stocks in a Precarious Place

We may have seen a very important occurrence on Wednesday. Not the market drop itself, which still did not take the averages decisively out to the trading range that has been in effect for three weeks, but which stocks were down.

I refer particularly to the financials. They have led the market higher in recent months, but in the last two weeks, as new highs were made in the averages, they refused to go through their old highs. Now, on Wednesday, many of them broke the prior level of support. They could well be the downside leaders if the markets perceive or fear adverse monetary action by the Federal Reserve. Therefore, two of the financials are shown below as possible short sales....372 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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