Financials Continue Rally

Financial stocks remain one of the strongest performing sectors in the market today and have helped the Dow get back above the 7,000 level.

Tuesday night I mentioned the JPMorgan (JPM, $21.78, up $1.38) April 25 calls (JSADE, $1.31, up $0.30) and how I had put them on my watch list when they were trading for 80 cents. The calls came back to these levels on Wednesday and I pulled the trigger on 10 contracts at 81 cents.

The financials have made a good run this week and I’ll try and put everything in perspective tonight. If the Dow can hold 7,000, and the S&P 500 can clear 740, we could be headed higher into next week. Some of the sharpest rallies come in bear markets so keep that in mind. Many of the trades have done well but it’s time we put one foot out the exit door.

Rick Rouse
Rick@OptionsMentoring.com

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