Thursday, July 15, 2010

I have Dishonored My Ancestors: "JP Morgan, One of the First Big Banks to Report, Is Setting a Bad Precedent" (BAC; C; JPM; WFC)

Banks trade generally mournful and reflective.
Currency devaluation reflects silently on still and glassy water.
Auspicious update, below.

BAC down 3.6%; C down 2.9%; JPM down 1.5%; WFC down 2%.

After getting on my Citigroup soapbox at $3.95 and rah-rahing it to $4.30 it is now back to $4.09, a penny above the former resistance (now, theoretically, support). Interesting positioning going into tomorrow morning's earnings report.
From ZeroHedge:
In a nutshell, a cursory glance of JP Morgan’s recent earnings announcement is middling, and that’s putting it optimistically. Revenue and profits have fallen nearly across the board, and the earnings beat is a result of moving capital from reserves to the earnings column. Even this may be suspect, for while credit metric trends appear to be improving (largely a result of massive government stimulus), the core, underlying cause of this malaise looks to be on the move downward again. See As I Made Very Clear In March, US Housing Has a Way to Fall.
I will be coming out with a detailed review of JPM’s results shortly. In the meantime and in between time, refresh your collective memories with past analysis and opinion:
An Unbiased Review of JP Morgan’s Q1 2010 Results Yields Less Roses Than the Maintream Media Presents

Citigroup posts in the last week-and-a-half:
Citigroup Inc. On Balance Volume Highest In 44 Days (C)
"Citigroup Inc. Stock Poised For Breakout" (C)
Citigroup: Breakout!: "Buy Bullish Citigroup Options Before Earnings, JPMorgan Says" (C)
"Market slump expected to dent profits at big banks" (BAC; C; JPM; WFC)
Rochdale's Dick Bove Calls Citigroup His Best Pick (C; GS)
Invest in Kirin
Mindfulness overrated
Sensei insensate

I'm tempted but no, I'm not going to go all kamikazee on the position, making a last stand, doubling down etc.
It will be extremely constructive if the stock holds $4.o8 through today's and tomorrow's close.
In the meantime the mountain sighs, the river weeps.
(sorry about the Haiku)