Bank stocks and financial powerhouses like JPMorgan Chase, Goldman Sachs, Wells Fargo, Bank of America and Warren Buffett-led Berkshire Hathaway are all in or near fresh buy zones. They're also all components of the Financial Select Sector SPDR exchange traded fund. The ETF has landed a spot on IBD Leaderboard.
Since JPMorgan, Goldman and Berkshire — as well as Mastercard and Visa — are all top holdings of the XLF ETF, investors can own a piece of each component with one trade. And as JPMorgan and Berkshire move bullishly into buy range, the XLF ETF has done the same.
Reflecting broad strength of the financial sector, JPMorgan was featured in last week's IBD Stock Analysis. JPMorgan stock is just one of several big banks riding the same strong trends.
In late June, the Federal Reserve announced that all 23 major banks, including JPMorgan, Goldman, BofA and Wells Fargo, passed their stress tests. With a clean bill of health, JPMorgan, Goldman, Wells Fargo and others boosted their dividends.
XLF In Buy Range With Rising Relative Strength
In mid-July, the XLF ETF cleared a 42.49 buy point in an early stage flat base. While building the right side of that pattern, the relative strength line has spiked. It now stands within striking distance of a 52-week high.
Riding the same bullish backdrop, Berkshire Hathaway, JPMorgan, Goldman Sachs and others show similar action. Spearheaded by Warren Buffett, Berkshire stock also formed and cleared an early stage flat base. With its RS line also on the rise, Berkshire recently cleared a 430 entry and remains within buy range. On Monday, it closed 2% above the initial entry.
Wells Fargo continues to work on a new base with a 62.55 entry. Like Berkshire, JPMorgan remains in buy range. Goldman Sachs eased back Monday but still trades at the top of its buy range.
JPMorgan, Goldman, Wells Fargo and many other big banks in XLF already reported second-quarter earnings. But Warren Buffett's insurance and financial juggernaut Berkshire Hathaway remains on tap to report Aug. 5.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
