Sector Scan: Banks and Financials

My Power Options system identifies the best candidates for option trading or short-term stock trading, and this week it’s showing financial stocks on the rise. These names are both volatile and liquid, two important characteristics of profitable options trading.

Use the following information to help you with your own options or short-term stock trading program.

Powerhouse Stock

This is one of the strongest stocks under surveillance with my Power Stocks system. With bullish long- and short-term performance, I don’t see a reason why this trend shouldn’t continue.

• Bank of America (NYSE:BAC)

Buy Watch

These stocks are in strong upward trends, with excellent upside potential. Buy on any further strength.

• Citigroup (NYSE:C)
• JPMorgan Chase (NYSE:JPM)

Improving Stocks

These stocks are temporarily improved from downward trends and show good upside characteristics relative to other stocks, but overhead resistance may limit the upside.

• American Express (NYSE:AXP)
• Tri-Continental Corporation (NYSE:TY)

 Emerging Stocks

These stocks have been in an upward trend for over a week, and display good upside characteristics relative to other stocks.

• Cincinnati Finance Corporation (NASDAQ:CINF)
• H&R Block (NYSE:HRB)

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.