The financials have started 2012 on a solid note despite continued worries about European banks which have created headwinds for US institutions. US financials have started to cut costs in an effort to increase their overall net profits.
At the end of 2011, Morgan Stanley said it will cut 580 of its 1,600 proposed job cuts at its N.Y. headquarters. Morgan Stanley (MS) plans to cut 2.6% of its employees at all levels between now and the end of January of 2012.
Morgan Stanley has a 52 week trading range between 11-58 and 31.04, and is currently trading closer to the bottom end of the range. The company has a price to earnings ratio of 6 and debt to equity of 336%. The market capitalization of Morgan Stanley is 30.65 billion and sales change last quarter was nearly 35%.
Technically, the stock is trading in a tight range near the 50-day moving average of the stocks, and below trend line resistance near $16 dollar per share. A break above resistance will likely test target resistance near $18.
The trade – Purchase a daily binary call option on a daily close of MS above $16.50.
Signal Summary
Asset : Morgan & Stanley
The trade : Binary Call Option
Expiry time : End of day
When : On a daily close above 16.50
Result : Signal expired in the money