Watch the banks!

This coming week, many of the big banks as well as other financials are reporting earnings. We bring this up because they are not acting well coming into the week. High volume down days and low volume bounces can be seen as support is being tested for some and breaking for others. For example, go take a gander at Citi. (C) The poor action can be seen in regionals as well. We bring this up because this is happening while the market is acting like the Hulk roller coaster this past week…recovering when the maniacal fed continued to prove our thesis and that is they are loathe to raise raites even a measly quarter point from 0%. In fact, a fedhead came out and said raising rates would be a catastrophe…and that’s with a supposed 5% GDP number. Stay tuned.

We saw very good action in other areas though. Good breakouts could be found in a bunch of restaurants, semiconductors and a bunch of very speculative biotechs. In fact, our biotech thesis may also be playing out as a host of names that have NO SALES are skyrocketing on any announcement. Does this remind you of anything?

The same areas we have been bearish on remain that way except for gold and gold stocks. They have finally jumped back above the 50 day moving average and looks like it is sticking. We actually found one low priced name, (GFI) moving out of range but most still need a lot of work.

Earning’s season time. Stay tuned. We expect a lot of jello moving on the plate.

Knicks are now 5-35. Unreal!