Stock Trends

Banks going into earnings, Hot List updates and 10 just plain good setups

Good morning,

We’re keeping it simple this week. We’ll check in on the three big banks that report earnings tomorrow, review movers from our Blue Chip Hot List, and then I’ve got 10 timely long opportunities that are breaking out from multi-month bases.

Or as I call them, just plain good setups.

Let’s get into it.

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Big banks ahead of tomorrow’s earnings

JPM remains leadership

JPM heads into tomorrow’s earnings report in a strong position technically. The stock made a new all-time high as recently as last Wednesday and has support at $204 followed by its 21 and 50-day moving averages.

Citi breaks out ahead of its report

Tactically, Citi may be overbought with a 13% gain in the past month and an RSI over 70. But this is one of the best-looking bank charts out there and it is leadership until proven otherwise.

Wells Fargo consolidating at 2022 highs

WFC is weaker than the two above, not having made a new high since May. But the stock could be forming a base and as long as it remains above $56 support, the base case should be a resolution higher.

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Blue Chip Hot List updates

Bank of America reports Tuesday

Our recent buy of Bank of America came at a perfect time, hitting the recent swing low (green arrow) as the stock retested its breakout. New 52-week highs have followed this week ahead of Tuesday's earnings report.