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Fast Action: JPMorgan, Goldman & Other Financials

Friday, 9 Oct 2009 | 5:49 PM ET

The Financials ETF traded higher on Friday ahead of next week’s earnings reports from some of the nation’s biggest banks.

Positive sentiment stemmed from Raymond James, which began coverage of JPMorgan with a "strong buy", saying the bank is poised to benefit from acquisitions, organic growth and market share gains.

Earlier in the week Goldman Sachs also made a bullish call -- they raised their rating on big banks to "attractive" from "neutral" citing a dramatic improvement in earnigns power.

Considering we're about to be deluged with big bank earnings reports, what's the trade?

Financial Earnings Next Week:

Wednesday: JPMorgan
Thursday: Citigroup, Goldman Sachs
Friday: Bank of America

Strategy Session with the Fast Money traders

I bought some October calls in Bank of America, reveals Karen Finerman. I like seeing earnings from JPM and Citi before my trade fires.

I’m bullish JPMorgan, adds Joe Terranova. That’s a stock I like for the long-term.

I’m very bearish on Citi, adds Tim Seymour, because they had to sell Phibro one of their best units.

I'm watching trends in the XLF as a proxy for the sector, says Bill Strazzullo on Fast Money's Halftime Report. It seems to me this ETF is breaking higher and that suggests there’s good upside here in this space.

I’m watching Goldman, adds Steve Grasso. Typically they shock investors with the amount of money they make and how they make it.

I’m seeing put buying in the sector, reveals Scott Nations. But that’s because it’s a bifurcated market. Some of the names are fantastic and other such as Wells and Citi just can’t seem to get any traction.

Mike Khouw of Cantor Fitzgerald has some thoughts about how to trade the financials using options. Curious? Watch the video now!

What Are Options Pits Saying?
Financials expected to dominate earnings next week, with Mike Khouw, Cantor Fitzgerald and the Fast Money team.



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Trader disclosure: On Oct. 9th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC), (BAC) Calls, (BAC) Preferred; Finerman's Firm Owns (UNH) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm Owns (CSCO), (M), (MSFT), (DRI); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WLP) Calls; Finerman's Firm Is Short (TLT); Terranova Owns (JPM), (MOS), (NOV); Terranova Is Short (GRMN), (CCL); Terranova Owns December 2009 Gold Futures; Terranova Owns December 2009 Crude Oil Futures; Terranova Owns December 2010 Crude Oil Futures; Terranova Works For (VRTS); Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.; Seymour Owns (AAPL), (BAC), (EEM), (F), (INFY), (RTP)

For Joe Terranova
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (DBA)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)



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