Banking stocks everywhere are on fire sale! Of course, what is keeping investors from buying now is the fear of the effect of the debt crisis and the implications on the economy. Brand names such as Citigroup, Goldman Sachs and Bank of America are at such fire sale prices that I am sure when we look back in a few years time, we will laugh ourselves silly that we do not pick up more of these stocks.
The economy will recover, it always does. If there is any truth to this statement "Buy low, sell high", this is it. Check out the chart below for the above mentioned banking stocks.We will need to see if their support level will hold and whether it will turn out to be a double bottom formation.
Citigroup
Goldman Sachs 'The Shark'
Bank of America
Fear is really very powerful indeed. My understanding of how fear works in the stock market is that it create sharp sell-offs and equally sharp rallies as well when greed steps in. The stock market is truly one of the wonders of the world, IMHO.
The economy will recover, it always does. If there is any truth to this statement "Buy low, sell high", this is it. Check out the chart below for the above mentioned banking stocks.We will need to see if their support level will hold and whether it will turn out to be a double bottom formation.
Citigroup
Goldman Sachs 'The Shark'
Bank of America
Fear is really very powerful indeed. My understanding of how fear works in the stock market is that it create sharp sell-offs and equally sharp rallies as well when greed steps in. The stock market is truly one of the wonders of the world, IMHO.
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