The last few months has seen a huge boom in the banking sector, and there are some stocks that are benefiting magnificently from the overall rise in the banking sector. I have always advocated trading with the trend, not because "the trend is your friend" although it is a good reason to trade that way, but rather smart money is fueling the trend and you want to be where the smart money is.
If you add onto this idea of trading accelerating stocks, one of the best ways to gauge how they are doing is how well behaved they are in trading through a channel. Citigroup, Bank of America, JP Morgan, Bank of New York Mellon have all demonstrated that they are trading in well behaved upward channels.
Channel trading is not difficult because as the stock bounces around in the channel it will find support on the lower part of the channel and the resistance is at the upper part of the channel. So if you are swing trading look to these points as pivot or reversal points. So lets take a look at the stocks.
Bank of America
Citigroup
JP Morgan
Bank of New York Mellon
Goldman Sachs
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