Once again, and as predicted last week, the heavily oversold financials are making a strong run and leading the markets higher. From smaller regional banks to the big guys like JP Morgan, we are seeing heavy buying that is re-inforced by the so-called "green shoots". XLF, being a basket of finanicals has done very well in the last couple days. Look for a possible pull back as earning season slows down a bit for the financials and we come to the end of the week expecting some profit taking.
Lined up for Friday, a BIG earnings report for Citibank (as well as Bank of America). The stock - C - has been on a roll the last few days (+15%), having tested the $2.60 resistance level late last week and is now trading at the $3.15 and building a good base at that level. I am looking for a big move up if teh earnings are solid... If we stay at these levels and teh earnings diseapoint, look for a re-test of the $2.60 levels next week.
Face
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