Financial Stocks Are Ready To Bounce

Published 06/27/2016, 02:37 PM
Updated 05/14/2017, 06:45 AM

The financial stocks another beating again on Monday on the heels' of the UK's historic vote to leave the Union. And it was the European banks that fell the most, as some of them shed another 20% just Monday.

While most traders are too scared to go near these stocks, the smart money is accumulating. This is not another Lehman situation. The global central banks will never allow something like that to happen again. I expect the banks to bounce into the July 4 holiday, surging on short covering and institutional buying. It may be a near-term bounce, but a big one none-the-less and should be played for profits.

In addition, the technical charts are confirming this with many of the biggest banks hitting major support on Monday. This is a great buying opportunity to scoop these plays up. Note the charts.jpm

Goldman Sachs Group
JPMorgan Chase & Co.

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