Took a positionIn FAZ for a trade. I think it may be able to run up to $12.80-$13 tomorrow. I suspect Wells Fargo and Morgan earnings may not be that great. Much like how Apple disappointed after Google, expectations may be a little high right now.
However, the banks are starting to outperform S&P and this may continue. I've been watching for this possibility and and surprised we have not seen it sooner. It may now be starting. Generally I think mkts and financials may dip today/tomorrow and then run to top out Thurs/Friday this week. Next week I expect a substantial selloff before the runup to the third peak and final peak. I suspect banks may run very strongly into that third peak with a short squeeze. It seems GS has more bank stock to unload! From there it's all down hard for mkts.
Clock is ticking for this rally but we are still playing musical chairs.
SC