Yesterday, the government released the results of the stress tests. Just like most anything the government does, people were criticizing. It was too easy, it was too tough, it penalizes the smaller banks, etc.
Fifth Third Bank Corp out of Cincinnati, OH recorded a 58% gain in their stock yesterday. Do we really think that these stress tests results could send a bank up that kind of margin, especially from a bank who is regarded as having bad balance sheets.
My prediction is that banks will become old news and creap down to a correction. I don’t know if I’m right. I feel like I’ve been more wrong than right so it’s probably my turn.
In the meantime, spend some time this weekend reading and set your buy and sell levels.