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5 Market Moving Comments Coming from JPMorgan

If you’re playing the banks, you have an early morning on Friday as JPMorgan reports results before the bell.

Considering the sharp gains in the sector, chances are you'll be among the throngs parsing through all the numbers and everything CEO Jamie Dimon says – and doesn’t say – looking for a read on other banks and the market as a whole.

“Everyone is going to be looking for tape bombs,” says trader Guy Adami.

And the potential ripple could be significant – a slew of other banks release their earnings over the next handful of days.

Take a look:

Tuesday: Citi , Wells Fargo
Wednesday: Bank of New York , Goldman Sachs
Thursday: Bank of America , Morgan Stanley

"Are the banks about to pause? Friday will be a tell," Adami adds.

What should you be watching?

Amid all the JPMorgan commentary and the data, the pros say the following matters most:

- health of the consumers
- housing market
- comments about returning capital to shareholders
- net charge off rates in credit cards
- capital markets activity

“This is what will impact other banks stocks,” says top ranked analyst Mosche Orenbauch of Credit Suisse. "Those are the key data points for banks to continue the rally broadly."

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NEW SLIDESHOW: The Biggest Momentum Stocks of 2011: Buy or Sell?

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But even if the commentary is positive, the Fast pros don't suggest hitting the buy button with abandon. Considering the sharp advance, they suggest playing banks with options to limit your downside risk.

"I like Wells and PNC ," Terranova says, "But I own calls."

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"I agree," adds Jon Najarian. "Options are the way to play."





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Trader disclosure: On Jan 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders

Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long CSCO; Terranova is long AXP; Terranova is long NFLX; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long MUB; Terranova is long SU; Terranova is long EMC; Terranova is long SBUX; Terranova is long DECK; Terranova is long CSX; Terranova is long SJM; Terranova is long XOM; Terranova is long JNPR; Terranova is long PNC Feb. $60 calls; Terranova is long WFC Feb. $29 callsAdami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE; Najarian owns AAPL; Najarian owns BAC; Najarian owns GS; Najarian owns BCS; Najarian owns TXT; Najarian owns URBN; Najarian owns INTC; Najarian owns CMC; Najarian owns FSLR; Najarian owns WYNN; Najarian owns DHI; Najarian owns LEN; Najarian owns WLT

For Rich Ilcziszyn
No disclosures

For Russ Girling
No disclosures

For Moshe Orenbuch
I, Moshe Orenbuch, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report

For Mike Ryan
No disclosures




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