back on march 21st, while the financials were ripping higher and bullishness was rampant, i made the case that the “too big to fail” behemoth financial institutions (BAC, C, JPM, etc..) were likely about to turn down, which they immediately did. obviously, the importance that those companies have on the global financial markets can not be overstated. i do plan to update those charts when i return home tomorrow as well as a few more key non-US financial giants that are looking very precarious from a technical perspective right now but until then, let me share my thoughts/charts on another sector that usually doesn’t garner the media coverage that the big banks do, but has the potential to send a ripple-effect thru the financial system… the investment brokers.
here’s a daily chart of the sector showing what looks like a rush to the exits lately. honestly, i do not ever want to perpetuate fear-mongering but if you haven’t already done so, you might want to check out the link titled “Is my money safe with my broker?” under the featured posts on the right hand side-bar. i made that post shortly after the MF Global failure but the point that i made about following your broker’s stock price for signs of potential trouble are still relevant. posting charts while working off my laptop in a hotel room is much more time consuming than at home but i will share some charts of a few stocks in the sector that look bearish, including where i have some of my own funds, interactive brokers (IBKR) who’s recent slide is of concern to me. for now, here’s the daily chart of the national investment brokerage sector: