4 Huge Stocks on Traders' Radars
I'd recommend buyers stay away from JPM's newfound "bargain status" unless shares can crack resistance at $36.85.
I also featured JPMorgan recently in "5 Big Financial Stocks to Buy in June." Bank of America
Nearest Resistance: $8.25
Nearest Support: $7.50
Catalyst: JPM Sympathy Trade
Bank of America(BAC) is getting attention as a JPMorgan sympathy trade today, down around 2% as of this writing. Sympathy trades are the name given to other popular stocks in a given industry that react to the news of a peer -- the logic is that if JPMorgan can flub a critical hedge, then so can firms like Bank of America. With the risks of that sort of screw-up slightly higher today, investors are selling shares of BAC.
Like JPM, Bank of America has pushed higher in June, and has been pulling back more recently. While the consolidation in this stock isn't as attractive as JPM's, today's selloff isn't as ugly either -- call it a wash. BofA has been making higher lows since May 21.
Until that changes, and $7.50 support gets broken, investors should be cautiously optimistic about BAC.