Brian Kelly, founder of Kanundrum Capital, bought the Regional Bank HOLDRs exchange-traded fund on Friday. It's a basket of bank stocks, which gives you exposure to both big and regional banks. He thinks the banks could continue to go higher and thinks this ETF is the way to play it.
Financial earnings will begin next week with Citigroup, which reports Tuesday. Goldman Sachs , USB and Wells Fargo reports on Tuesday. Huntington Bancshares , Morgan Stanley and PNC report on Thursday. Bank of America , BB&T and SunTrust reports Friday.
Meanwhile, JPMorgan Chase shares surged Friday after the financial institution reported a 47 percent jump in profits, which beat both earnings and revenues estimates.
"This is the first quarter that all their business lines had strong revenue growth, so we think in 2011 will shift from credit improvement to revenue growth and JPMorgan is leading the way," said Cassidy.
The beat is a nice catalyst for JPM, but Cassidy said others will follow. When the federal government reports which banks can increase their dividends, Cassidy expects JPM to top the list. He thinks JPM will increase its dividend to $1 from 20 cents a share.
Cassidy said now is the time to buy JPM.
NEXT WEEK'S NOTABLE EARNINGS
Several blue chip companies will report earnings next week: