Any potential good news that will support the financials?

Quote from mizhael:

I hear people whispering about a potential bottom next week,

and some people even say BAC will reach $8-10 in the next a few weeks.

Before claiming their sayings ridiculous, I want to think carefully myself: are their possible positive news that will support a rally in the financials?
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Financials file for bankruptcy, and banks are nationalized, many bankers are jailed when they discover shady practices?

Until such scenario arrives (if), it's safe to invest in financials.
 
Quote from mizhael:

I hear people whispering about a potential bottom next week,

and some people even say BAC will reach $8-10 in the next a few weeks.

Before claiming their sayings ridiculous, I want to think carefully myself: are their possible positive news that will support a rally in the financials?
More...
It is more than just financials. Look at every major sector in the S & P using any technical analysis method and every thing is in the crapper. All are blinking buy signals for a short term rally. For example RSI (14) is at 28.90 on the daily XLF.

But these indicators don’t mean anything. What every one is looking for is the catalyst that turns these markets around. Instead we may drift around all this coming week going lower and the following weeks. Bad news may knock us down more.

But the stage is set to jump higher. That is why so many traders are covering shorts. That is why I did.

Listen to Nervesasteel. We will go right back down quickly if Obama does not soon get toxic assets out of banks. This is the only way to stabilize these markets. Everything depends on secure viable financial markets.
 
They are not flashing buy signals. S&P is expected to report $33/sh in earnings (as reported). In a bear market you can expect 9-11x earnings. Currently we are trading at 21x expected earnings.
 
Quote from vikasd:

They are not flashing buy signals. S&P is expected to report $33/sh in earnings (as reported). In a bear market you can expect 9-11x earnings. Currently we are trading at 21x expected earnings.
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Vikasd. Sorry but I did mention a thing about earnings. The post was not about earnings. I don’t care about earnings. Earnings are irrelevant right now because you could not get two in a thousand economists to agree on the same number at this point.

This market has been moving up and down on technical information because earnings are irrelevant. Support and resistance are the primary method of market movement each day. There is not much more to go on.

My post was about indicator technical analysis which most traders are familiar with. The buy signal I referred to is from any indicator you pick. They are all over sold. Using indicators at the highest level, sectors, I was pointing out is every one of them in this market is oversold not just financial.
 
Ok, agreed earnings picture is very foggy and we don't know what it will be.

Technically speaking, we are below the support levels from 96. We need to retrace back to 94 i.e. 450-500 area on SPX.

Financials will rally on if some private investor or foreign bank buys an equity stake. By default we are heading to nationalization.
 
Quote from vikasd:

Details on the bad bank + M2M suspension. That way banks can get rid of the toxics at a price which is non-zero.
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That is only good news....for the financials....and screws the rest of us taxpayers who have to pick up the tab for the banks' crap....now if you include the beheading of the banksters with that...then that would be good news...I am NOT joking!

-gastropod
 
Tax payers have to foot the bill whether banks stay private (with bailout) or nationalized. If banks stay private, at least the job bleeding will stop. With nationalization, our banks will be as efficient as the security line on the airport.
 
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