Struggling at the open stocks appeared to drift listlessly until a rumor about Saudi Arabia and Russia agreeing to a production freeze. This was all the market needed to push higher. Volume surged on the day as investors rushed into stocks. Crude ended the day up more than 4%. Small caps showed some strength, but the Dow seems to have the attention of investors. Bank earnings are up next and could push the Dow into new high territory. This uptrend has not given up yet, but plenty of market participants can’t seem to get on board. Stick with the trend and ignore the noise.
Bank stocks are certainly in favor the past few sessions. Stocks like JPM, BAC, and GS are certainly finding support at the 50 day moving averages. JPM is set to report earnings Wednesday morning at 6:45 am EDT. Regional banks appear to be springing back to life. Banks are in desperate need of higher rates and given the rhetoric from Yellen this action for some is odd. If Banks want to break out and run we do not care why. As long as they offer proper risk/reward we will ride the wave higher.
Let’s see what this market has in store for us next. We continue to ride this uptrend and no matter how lame it may be we are not going to miss out on potential gains.
