ETF madness is on display.  In spite of good earnings from banks, bank ETFs are being sold on flattening yield curve.

JPMorgan (JPM) is long from $34.14.  It is trading at $107.53 as of this writing.

Citigroup (C ) is long from $33.80. It is trading at $67.02  as of this writing.

JPM and C reported earnings better than consensus but in line with whisper numbers.

As of this writing bank stocks are seeing selling because of ETF madness.  Such a reaction is quite common.  Professionals who bought these stocks in anticipation of good earnings over the last couple of weeks for short term trades, sold into the strength.  Selling often begets selling by the momo crowd. The momo crowd is heavily selling bank stocks.

JPM Zones And Ratings

JPM ‘Buy Now’ rating is a ‘YES’ for those following the ‘Good Way.’  For those following the ‘Best Way’ the JPM buy zone is $91 to $100.88.  The markets are volatile, that is why a wide buy zone is needed.  Please see Trade Management Guidelines for how to scale in.  Buy zones are designed for a 70% probability of a fill over the next 120 days.  The target zone is $145 to $155.  JPM also has 2.15% dividend.  This is a very long-term position.

C Zones And Ratings

C ‘Buy Now’ rating is a ‘YES’ for those following the ‘Good Way.’  For those following the ‘Best Way’ the C buy zone is $62 to $66.91.  The markets are volatile, that is why a wide buy zone is needed.  Please see Trade Management Guidelines for how to scale in.  Buy zones are designed for a 70% probability of a fill over the next 120 days.  The target zone is $140 to $160.  C also has a 1.92% dividend.  This is a very long-term position.

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