Stock Trends

Is all the banks breaking out bearish?

Good morning,

I workshop this report all week and on Tuesday evening, the title and focus seemed clear.

The banks all broke out in a big way on Tuesday, many of them making multi-month, and in some cases all-time, highs.

But then wouldn’t you know it, Nvidia went and made a new all-time high yesterday.

Well, I’m keeping the title because I’m think it’s an important (albeit hopefully obvious and rhetorical) question.

Do you think banks breaking out is bearish?

Legendary technician John Roque told me earlier this year, “Technology is a tell on the market, financials are a tell on the economy”.

Well guess what? Both are breaking out. So if you know somebody that is bearish, please send them my way so we can teach them a thing or two.

This week, we’ll review:

• 3 big banks stocks

• Nvidia and other stocks breaking out

• Hot List updates

• Homebuilders trying to bottom

• and more!

---

Big bank breakouts

New all-time highs for JPM

Let’s start with the best of the bunch: JPMorgan Chase. Last featured two weeks ago in “Stocks on my watch list”, JPM broke out on Tuesday and added an additional 1% yesterday. At a 10.7% weight, this is the second-largest stock in the financials sector.

Citi gearing up for another run at a 5-year base breakout

Citi was a 2025 Base Finder stock, and after a false start in February (and 34% drawdown) the stock is back at the $83 level that has capped the stock going back to 2008. This long-term base conservatively measures to $120.

3-month highs for Wells Fargo

Wells Fargo is up more than 8% in the past five trading days and yesterday’s 1.2% gain took it through a key resistance level. Only the February highs ($81.50) are left to call resistance, but the 8-month base implies potential well beyond that.

---

Other breakouts

Nvidia finally does the damn thing

Nvidia made new all-time intraday and closing highs yesterday, making a statement in the process by gaining 4.3% and closing at the highs of the day. Backing and filling is always a possibility but this breakout is why we increased SMH in our ETF models at the beginning of the month. A conservative target off this base is $195.