BALTIMORE (Stockpickr) -- Who the heck wants to buy banks right now? The financial sector has underperformed the S&P 500 by 20% in the last 12 months, and it's no surprise that investors are anxious about banks this summer -- especially after Jamie Dimon's high-profile appearance on Capitol Hill yesterday.
But as every good contrarian knows, the crowd is usually wrong at turning points. So the glut of investor anxiety around the financial sector this summer might be exactly why it's worth a second look.
High correlations plague bank and insurance stocks more than any other industry. In other words, a preponderance of factors make all financials trade together - so more often than not, the whole sector is either a buy or a sell; there isn't a whole lot of diversity in the financial sector's price action. But there are a handful of financial names that are looking strong from a technical standpoint. Today, we'll look at five of the big name financial stocks worth buying.If you're new to technical analysis, here's the executive summary: Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! Every week, we take an in-depth look at big names that are telling important technical stories. Here's this week's look at the technicals of five big financial stocks ready to move higher.
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