Why Big Banks Are Red and Small Banks are Green?

Today, President Obama announced that he plans to increase regulation on large banks by preserving banks ability to take risk and strengthening the money system.  This news caused large financial companies to sell off causing the stock market to decline almost by 2%. 

Look at JPM, which is down more than 6.5% today alone.  It broke its upward support line today and is headed towards it next support at $40.  Once JMP breaks $40, then it could continue to decline.















Here is a result of other large financial companies:
GS is down more than 4%
BAC is down more than 6%
MS is down more than 4%

Now let’s look at smaller financial companies.  Regional Financial (RF) closed up almost 2% and at one point it was up more than 6% today.  Soon, it will most likely break the upward resistance line and head much higher.











Here is a result of other smaller financial companies:
ZION is up more than 2%
BBT is up more than 2%
FITB is up more than 6%


Instead of just holding onto these large financial companies, it’s time to move your positions from large financial companies into smaller financial companies to reap the greatest benefits.


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