Big bank shares are paring some of earlier losses and despite a very bad week for Financials, there is some reason for technical hope for stabilization after the Financial sector has reached absolute levels of support per its Ichimoku cloud, while relative charts of Financials are right near prior lows (I'll share this latter chart tonight)- Despite Trading numbers and big stock buybacks being positives for the Banks, the net interest margins along with Loans trailed estimates. I feel like weakness in AXP-3.15% JPM-1.45% and BRK/B makes these appealing and these are some of my favorites within the entire Financial space along with the Credit card stocks V-1.56% and MA-2.27% - For a complete list of my favorite Financials, see last week's Friday note- 4/5- "Surveying Financials Sector ahead of Bank Earnings next week"-Β While the lack of a strong snapback rally over the next month would make me a bit more nervous on the prospects for Financials in back half of 2024, i had raised my technical rating to Overweight last month and feel like this group is apt to show some strength into May. However, Regional banks and Investment brokers right now are more challenging areas within the Financials space. Chart of Invesco's Equal-weighted Financials ETF (RSPF-2.57% ) hitting support, below
