Post Earnings Share Performance of Key Banks and Brokers 11th Nail in Bull’s Coffin

Michael Markowski  |

Since last Friday April 13th three of the USA’s largest banks including JP Morgan (JPM), Citigroup (C) and Bank of America (BAC) reported RECORD quarterly earnings. Separately, the USA’s two largest brokers reported their earnings for the first quarter of 2018. Morgan Stanley (MS) reported record quarterly earnings and Goldman Sachs (GS) significantly beat its estimated earnings. Prior to the earnings announcements many of the pundits and analysts had predicted that the reporting of upbeat earnings by the banks and brokers would be the key for market getting back to and eclipsing its all-time highs.

After the shares of each of the five initially opened higher the prices for all of them fell and closed lower on the day of their respective earnings releases as compared to their prior day closes. The inability for the shares of the five financial institutions to advance back toward their early 2018, much higher highs further supports the fact that the major indices have seen their all-time highs for the secular bull market that began in 2009. The lackluster performance of the shares of the five is the 11th nail in the 2009’s Bull’s coffin.

The chart below is for the Financial Select Sector SPDR ETF (XLF), which is the primary ETF that traders utilize to trade the banking and financial services industry. That the XLF was unable to eclipse its previous 2007 all-time high when the market peaked in January 2018 is yet another confirmation that the highs for the old bull area in.

The 11th nail further increases the probability that the market will not get back to its January 2018 all-time high for at least eight years and makes it more likely that the new secular bear market was born in January 2018. See my February 2018, article “BULL DEAD, BEAR DOB 01/31/18: Expect Stock Market Decline of at Least 50%”. The video below provides details about the secular bull and secular bear markets that have occurred since 1802 and why they all of had minimum durations of eight years.

For those who want to remain in the markets until the significant correction begins or who wish to profit from trading the S&P 500’s triple leveraged short (SPXS) and long (SPXL) ETFs a subscription to the Bull & Bear Tracker is recommended. The Bull & Bear Tracker has a proprietary algorithm that is based on the Dollar/Yen exchange rate which tracks the market. For information about the Dollar/Yen being a leading indicator for the S&P 500 watch the video below or go to https://profitfromthecrash.com/yen-sp-500/.


To insure access to all of my articles, reports and alerts covering the new bear market which was born on January 31, 2018 (see my February 6, article “BULL DEAD, BEAR DOB 01/31/18: Expect Stock Market Decline of at Least 50%) sign up for the free newsletter at http://www.dynastywealth.com/news-nviro-1.php. Additionally, all of my updates including my play by play on the 2018 crash upon its commencing will be sent to the newsletter’s subscribers.

I am recommending the deployment of a 90/10 Crash Protection Strategy. For information on the strategy which is the only fail-safe strategy that one can utilize to protect their liquid assets from crashes, recessions and depressions view video below entitled “Crash! & 90/10 Crash Protection Strategy”.

Insert video https://www.youtube.com/watch?v=GH2GX9tsGGw&feature=youtu.be

Disclaimer. Mr. Markowski’s predictions are frequently ahead of the curve. The September 2007 predictions that appeared in his EquitiesMagazine.com column stated that share-price collapses of the five major brokers, including Lehman and Bear Stearns, were imminent. While accurate, they proved to be premature. For this reason he had to advise readers to get out a second time in his January 2008 column entitled “Brokerages and the Sub-Prime Crash”. His third and final warning to get out, and stay out, occurred in October of 2008 after Lehman had filed for bankruptcy. In that article “The Carnage for Financials Isn’t Over” he reiterated that share prices for Goldman and Morgan Stanley were too high. By the end of November 2008, the share prices of both had fallen by an additional 60% and 70%, respectively — new all-time lows.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
C Citigroup Inc. 68.62 -1.22 -1.75 18,169,556 Trade
MS Morgan Stanley 46.03 -1.16 -2.46 14,874,021 Trade
JPM JP Morgan Chase & Co. 108.09 -1.74 -1.58 17,582,467 Trade
GS Goldman Sachs Group Inc. (The) 224.95 -3.33 -1.46 2,995,425 Trade
BAC Bank of America Corporation 28.25 -0.65 -2.25 77,376,954 Trade
XLF SPDR Select Sector Fund - Financial 26.57 -0.45 -1.67 81,706,040

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.