The market is rallying. All stocks are trading at a higher multiple now. Look at Macy's stock action.
The stock jump upwards today squeezing all shorts positions that were created last week. This means that the market wants to trade at a higher level. Investors are valuing Macy’s at a higher multiple. As of today, it is trading at 12X forward PE.
Macy’s is a retail stock, its high multiple suggests that the market is seeing a true economic recovery and that consumer confidence will ultimately strengthen in March.
This suggests that Bank stocks are severely undervalued. Most large investment banks are trading at low forward PE of only 9X. Bank Of America Corp (8.63X) is trading at a lower forward PE than CITIGROUP (10.7X)! This is insane. BAC has better fundamentals than CITIGROUP, yet it is cheaper.
Bank Of America stock chart looks promising that it will break out to a new high in 6 months! I am seeing $18 very soon, it could happen this week.
Other Financials news. All the republicans in the Senate Banking Committee voted against the financial reform bill. Good news for financial stocks.
Asian financials are soaring.
Casino stocks continue to soar. Las Vegas Sands $LVS made an impressive gain today. 9% up.
5 comments:
What tool are you using to analyze stocks?
I am mainly using Fibonacci Retracement and Support/Resistance. I also observe common candlestick patterns such as H&S, Triangle, Wedge, Flag.
And I am monitoring DOW to find the trend of the market. Fundamentals are very important too.
What program is that that you are taking screen shots of?
I am using snipping tool. Windows 7 feature to take screen shots.
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