Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The 5 Strongest Names in the Financial Sector

By

Plus, updates on Bank of America, JPMorgan, Citigroup, and Morgan Stanley.

PrintPRINT
Readers who follow our firm's work will recall that we have been bullish on the financials since August 23, 2012, which is when we got Buy ratings on Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM). We wanted to update readers about some widely followed financials at this time.

First up is Bank of America. For readers who are not familiar with our ratings system, the best risk/reward scenario is to get long a Strong Buy (5) rating from a Buy (4) rating and reduce 50% at approaching overbought and 100% at overbought. Additionally, we recommend scaling out of longs with a downgrade to a Hold (3) rating, and being out of a name completely with Sell (2) or Strong Sell (1) ratings. Yesterday we got a downgrade from a Strong Buy to a Buy. This move is not very alarming, as we saw a similar pattern on November 16. At this juncture, we sold 75% of Bank of America, and we will now wait for a Strong Buy to scale back into this name. The stock is no longer extended, and it is neutral on the countertrend reading.

Next up are Citigroup (NYSE:C), JPMorgan, and Morgan Stanley (NYSE:MS). Currently, we have Citibank as a Strong Buy; it was approaching overbought on February 14. Citigroup has a very similar pattern and high correlation to Bank of America and JPMorgan. Because of the high correlation of the large cap financials, there is no reason to own more than one of these names. At this juncture, we will not be adding to this name. Both JPM and MS are rated Strong Buys; both are slightly extended, even after the slight pullback.

For those who are looking for some diversification within financials, the five names in the chart below -- Apartment Investment and Management (NYSE:AIV), XL Group (NYSE:XL), Allstate (NYSE:ALL), Health Care REIT (NYSE:HCN), and Ameriprise (NYSE:AMP) -- are the strongest within the financial sector.




Click to enlarge


Click to enlarge


Click to enlarge


Click to enlarge

Editor's Note: Today at 4:30 p.m. ET, Minyanville is hosting a free webinar with Buzz & Banter contributor Peter Prudden, who will give attendees an in-depth look at his macroeconomic outlook and trading style. To sign up for this free event, click here and hit the register button on the upper-left side of the screen.

For more from ChartLabPro.com, click here.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE