Stock Trends

Big banks, big tech and big moves within real estate

Good morning,

The one-day reaction to yesterday’s CPI report was in a word… Bad.

Even though rates had decisively broken out last week, the equity market seemed convinced that rates weren’t going to be an issue. In fact, the best-performing areas of the market on Monday and Tuesday were regional banks and real estate.

But it was not meant to be, and those areas were hammered along with everything else on Wednesday.

It’s usually best to let the dust settle and evaluate the whole market following the end of the week, but certainly, the case for a correction is strengthening.

The good news is that from a bottom-up perspective, most charts look buyable on pullbacks.

This week, we’ll look at:

• Big banks that report on Friday

• Weakness in retail stocks

• Top tech stocks

• Movers from the Blue Chip Hot List

• Solar equities

• and more!

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Big banks on Friday

JPM still a leader, breaks the 21-DMA ahead of earnings

JPM outperformed amid yesterday’s bloodbath, falling just 0.9%. Still, that was enough to push the financials sector’s second-largest stock below its 21-DMA for the first time since January. Still a relative leader with a ton of support between the 50-DMA and $175 level.

Tight consolidation for Wells Fargo

WFC has traded in a $2 range for a full month so earnings seem like just the catalyst to kick it into decision mode. My bias would be up but a break of $56.28 could lead to more downside.

Citi is a leader

Say it again. Citi is a leader. I mean literally how bad do you think things are if Citigroup stock was at a 52-week high 8 days ago? The 50-DMA has consistently acted as support since its October bottom so until that changes there is no reason to bet against it or financials at large.

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Retail focus