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MV Weather Report: Banks Chasing the Clouds Away, At Least for Now

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Rain or shine, we review the day's biggest stock stories.

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Today was a bland session: The DJIA closed down, but the S&P 500 and NASDAQ were up marginally at the close. Interestingly, the S&P 500 closed at 858 today; on Friday, I mentioned that the S&P had a potential square out at 859.

The leaders of today's session were the banks: The sector continued to rally off the strength of Wells Fargo's (WFC) report last Thursday. Today's big gainer was Bank of America (BAC); the stock is no longer a single-digit midget, as it closed at $11/share.

Goldman Sachs (GS) traded extremely well, and released earnings shortly after the close of trading today. The company reported EPS of $3.39 vs. $1.60 consensus estimates; revenues came in at $9.43 billion vs. estimates of $7.09 billion. The company announced a $5 billion public-equity offering and declared a $0.35 per share quarterly dividend. EPS and revenue lines were huge, but the stock sold off in afterhours trading; it's now down 3 points, to $127 a share.

Today on the Buzz and Banter, Professor Jeff Cooper took a look at Goldman using his square of 9 chart.

"Goldman Sachs bottomed at 47.50 on November 21st. November 21st conjuncts or vibrates off 47.50. Time and price squared out at that point.

"360 degrees up is 79/80. 720 degrees up from low is 119.

"A 90-degree overthrow of this important 720 degree move is 130.

"143 is opposition the Nov. 21st low and 900 degrees off the low."



Click to enlarage


As for tomorrow's session, traders will be watching for a reaction to Goldman's earnings. Currently the S&P futures are trading at 854. I would also watch the banks and Morgan Stanley (MS). After seeing these earnings, it's obvious why the market has run up so much. But will the rest of the banks report similar numbers?

Traders will also be looking at economic data, namely PPI, Retail Sales, and Business Inventories. These will be released at 8:30 et and 10:00 et. If you missed it, read new Minyanville Professor Jack Lavery's excellent economic insight for this week.

After the close of trading, tech earnings will kick off when Intel (INTC) reports its first-quarter numbers. Consensus estimates have the company earning $0.02 on revenues of 6.97 billion.

All right, Minyans - have a great night!



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No positions in stocks mentioned.

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