This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Big Trades From the Financial Sector

American International Group

First up is insurance giant American International Group (AIG - Get Report). As impressive as the price performance of the financial sector has been in 2012, AIG shareholders have managed to outperform even that. Shares of this $62 billion company have rallied more than 56% since the first trading day of January, and now AIG's chart is indicating even higher ground for the final quarter of 2012.

>>5 Leanest and Meanest Bank Stocks

That's because AIG is currently forming an ascending triangle pattern, a setup that's formed by a horizontal resistance level to the upside, and uptrending support below shares. Essentially, as AIG's price bounced in between those two technically important levels, it was getting squeezed closer and closer to a breakout above $35 resistance. That breakout finally happened last week.

Since then, shares have been consolidating, giving buyers a chance to catch their breath after pushing AIG's price through a level that's previously acted like a ceiling for shares. Momentum, measured by 14-day RSI, has been trending higher as over the last several months, a factor that adds some extra significance to the breakout in AIG. Since momentum is a leading indicator of price, the momentum uptrend means that AIG's price is still increasing at an increasing rate right now.

If you decide to buy here, I'd recommend keeping a tight stop just under the 50-day moving average.

I also featured AIG last month in " 5 Huge Stocks Ready to Slingshot Higher."
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AIG $55.83 0.00%
AHL $46.47 0.00%
AXP $65.84 0.00%
FII $31.41 0.00%
WFC $50.41 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs