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Kaminsky's Call: Follow the Financials Before Investing

Here's something you can bank on. If the financials don't trade higher, this market is going nowhere fast.

Legendary stock picker Bob Olstein laid it out perfectly: investors won't truly regain their confidence until the banks can put their balance sheet woes behind them and show quality earnings with strong guidance.

So my "Call-to-Action" could not be clearer: follow the financials before putting money into the market.

The next few days will be extremely telling with results coming from JP Morgan Chase, Goldman Sachs, and Citi .

If investors really want to see S&P break out of its technical range to the upside, then that move must be made by the banks, which in spite of everything, still comprise one of the largest sectors in the S&P.

Of course, the earnings will be important, but it's the guidance in the second half that will move stocks. And you can take that to the bank.

"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.

DISCLOSURE:
Gary Kaminsky does not hold any equity positions.

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