The banks stocks have had a good run, leading the way along with the tech stocks since October. But having reached the resistance at their peaks of last spring are they leading candidates to lead the way down in any Sell in May and Go Away correction again this year?
Recent economic reports from the housing industry indicate the previous signs of a bottom in housing were premature, making it likely the backlog of foreclosures and pressures for loan modifications will return to being a headline problem for banks. Then there is the problem of adapting to regulations that have cut into their previously most lucrative profit-centers, especially finding ways to build profits and fees in a continuing weak economy.
A sector to watch closely for potential short-sales.
Got to cut it short this morning and get back to work for subscribers on the new issue of the newsletter, due out tomorrow.
To read my weekend newspaper column ‘Don’t Shrug Off Similarities To Last Two Aprils!’Click here.
Images: Flickr (licence attribution)
About The Author
Sy Harding publishes the financial website www.StreetSmartReport.com and a free daily Internet blog at www.SyHardingblog.com. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!