Watch the Banks

Earnings season starts today. How it goes is all up to the banks. [Jeff Clark's Market Minute]( Watch the Banks By Jeff Clark, editor, Market Minute Earnings season starts today. How it goes is, once again, all up to the banks. The action in bank stocks tends to lead the action in the broad stock market – especially during earnings season. When the banks are strong, the market rallies. When the banks are weak, so is the stock market. The major money center banks are scheduled to report earnings starting today. And however the market reacts to those reports will set the tone for this earnings season. The bank stocks have enjoyed a monster rally over the past several weeks. The KBW Bank Index (BKX) is up 33% since late November. Expectations are high. Most of the financial television talking heads are super-bullish for the banking sector – for good reason. The Fed has stopped raising rates. The economy appears to be humming along just fine. The stock market rally is boosting trading activity. And the risk of a Treasury bond collapse that was such a concern last year is merely an afterthought today. Recommended Link [Bill Gates Epic A.I. Flip-Flop (And How to Profit)]( After calling ChatGPT “every bit as important as the PC or the internet” last year... Bill Gates now says AI has “plateaued” and that ChatGPT has hit a wall. [image]( Does that mean it’s too late to profit from AI stocks? According to the Silicon Valley insider who warned folks about stocks like Zoom, Intel & Rivian... A new phase of AI profits is about to unfold [starting on January 30th](. He’s shown readers returns as high as 296%... 658%... even 3,260%... More people tune into his videos than primetime CNN & MSNBC combined. Now he’s showing investors [the name & ticker of 1 “horrific” AI stock to avoid]( And 3 potentially very lucrative stocks to consider. [Get all the details right here.]( -- But I’m a Contrarian… Just about everyone is looking for good news from the banks this earnings season. And the price of the bank stocks reflects that situation. But my contrarian nature has me wondering if the banks have rallied so much that we’re due for a downside surprise. Look at this chart of BKX… [(Click here to expand image)]( Over the past four weeks, the index has been grinding higher – making a series of higher highs. But, while BKX has been rallying, the technical indicators at the bottom of the chart (MACD, RSI, CCI) have been making higher lows. This sort of “negative divergence” often signals an impending change in trend – from bullish to bearish. The upcoming earnings season could be a catalyst for that shift. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Let’s face it: most investors are looking for positive announcements from the banks. They’ve been buying the stocks in anticipation of bad news. So, much of the potential for good news is already discounted in the price of the stocks. That means any hint of bad news could inspire a sell-off in the banking sector. And if the banks start to fall, then the rest of the stock market should follow along. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute IN CASE YOU MISSED IT… [WARNING: These 110 Banks Could Replace the U.S. Dollar in Weeks]( Please, pay close attention because if your bank is on [this “blacklist” with 110 banks]( your entire life savings could be at risk. According to this famous banker, you must move your cash before January 31st… Or risk losing everything. [Click here for the three critical steps to take]( to prepare for what The Wall Street Journal called a “game-changing development.” [PREPARE NOW.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](