Time to Buy the Big Banks?

Earnings season is already here. JP Morgan and some of the other banks are bidding higher in the pre-market after $JPM posted an increase in first quarter earnings that beat analyst expectations. I would like to give a ton of credit to the Raymond James analysts that have literally been pounding the table to buy the big banks (BEFORE EARNINGS ARE RELEASED). All too often you get the analyst upgrades AFTER they beat and the stocks are up huge, barely ever beforehand. Good for them. (Wall Street Journal)

The $XLF chart is still a mess. This is the ETF that owns all of the Financial stocks. I'm looking at resistance up at 16.75 with support down at 16.25. A breakout above resistance is very encouraging while a break below support will cause us to reevaluate our position here. I think based on the action of the $XLF components, the likelihood is a break higher.

We all know what $JPM is doing this morning and there are 52,000 stories and charts on this stock (I included a few links below). So let's take a look at a couple of bank stocks Raymond James is loving right now that have yet to report their quarterly earnings.

Bank of America - $BAC is trying to find support at the 200 day moving average as it consolidates in a descending triangle type formation. This looks like a typical consolidation to me. Citigroup - $C has some similar action here. Both of their earnings reports are coming up soon: BofA on Friday (4/15) and Citi on Monday (4/18). This is going to be a fun week.

On a side note - the Relative Strength Index (RSI) is positive and in bullish territory on all 3 charts: $XLF $BAC & $C. No one is talking about the banks and I know way too many people that hate them. I'm interested.

[caption id="attachment_394" align="aligncenter" width="620" caption="Bank of America"][/caption]

[caption id="attachment_390" align="aligncenter" width="620" caption="Citigroup"][/caption]

$JPM stuff:

JP Morgan: EPS Beats, Revenues Slightly Light (WSJ)

JPMorgan Chase Earns $1.28 Per Share (Eddy Elfenbein)

Making Money on the Money Makers (Greg Harmon)