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Investors follow the money to bank stocks

September 6, 2012: 2:39 PM ET

The bank stock surge continues.

Investors, high on pledges from the European Central Bank to buy more sovereign bonds and better-than-expected U.S. employment numbers, grew euphoric on what those moves could mean for banks' profits.

Bank stocks, including JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs (GS), and Citigroup (C), shot up roughly 4% Thursday.

It was also a hot topic on StockTwits, where at least one tweeter was keen to point out that where the ECB goes, bank stocks follow.

Stevez1: $SPY once again nearly every so called rally comes from the same Draghi (aka $GS in drag) news. Rinse and repeat at will between Thurs/Fri:)

Not everyone was quite as euphoric....and with good reason. Actions speak louder than words and last I checked, Europe's debt crisis was far from over.

Branche37:  Be cautious about Draghi's promises. He may exceed its powers for not being the germans muppet. He was at $GS. He knows well what's a muppet

Even with that dose of caution, investors were piling into financials.

Templec4: huge volume in the banks this morning notably $C$BAC$WFC,$JPM.

leopardtrader: Keep eyes on Financials on this strong move. could last for several days with new highs on $SPX $SPY $GS

RedDogT3Live : $JPM on the highs of the day. Its good to follow the money. $GS yesterday $JPM today. Trim some and trail some

ki11tank:  $BAC and $JPM both pushing the elevator buttons again, on key levels of resistance and volume shelves, huge potential w/ $SPXflyin..

MrBarrySchwartz: I can understand why investors hated US financials a few years ago, but now there making lots of $$ and housing is recovering $JPM$BAC $C

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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