Bank earnings provided disappointments today with more to come on Friday.
JPM and Citi both disappointed on Thursday and the weakness in the financial sector weighed on the market. On Friday four additional major banks, BAC, WFC, PNC and FHN report before the open. If they report weakness in consumer loans and rising defaults, this could cause cascade selling in the financial sector and possibly damage sentiment for the overall market. Investors do not want to hear that consumers are suddenly defaulting on debt because that suggests the job market and the economy is weaker than we thought. There is no reason to add risk ahead of the weekend. North Korea still has a missile on the launch pad and The White House has let a few more crumbs slip about a possible military event. There is too much weekend event risk to add additional positions.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays