This morning $UBS recommended the major banks. The Chaikin Power Gauge turned bullish on most of these banks in mid-December.
After a 3 month move to the upside the major banks are overextended. Don't chase them here but rather buy them on pullbacks.
Stocks with a bullish Chaikin Power Gauge Rating which also have strong technical patterns and bullish Chaikin Money Flow include:
Bank of America - $BAC
Citigroup - $C
JP Morgan Chase - $JPM
U.S. Bancorp - $USB
Wells Fargo - $WFC
All of these stocks are overbought. However, given the depths of the declines which preceded the lows, in the October - December 2011 time frame, they may not pullback enough to satisfy those on the sidelines who did not participate in this extraordinary upward move.
Use pullbacks of 5- 10% over 3 - 7 trading days to establish positions or add to existing holdings in the major bank stocks with bullish Chaikin Power Gauge Ratings.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.