Last Friday, Pete Najarian recommended the brokers ahead of this week’s earnings parade. Buy them on Monday and sell them on the eve of Goldman Sachs’ (GS) earnings, he said. Guy Adami agreed, and the trade would have paid off. Goldman and Bear Stearns (BSC) both took a hit in their earnings today from the continued subprime fallout. But because the banks have been earning so much revenue, anything short of a grand slam isn’t good enough. “The expectations were ridiculous,” Guy says. Stick with the banks as a long-term play, the guys say, but be weary of short-term sell offs until the subprime problem is completely flushed out.
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