Big banks have reported for the quarter, and as expected those with a strong trading arm ($MS, $GS) strongly outperformed the ones with a stronger retail presence ($BAC, $WFC), with $JPM being the 'best of both worlds'.
Nevertheless, the 10 years does not tell a story of recovery, nor increased loan loss provisions do. Last quarter's performance was mostly driven by volatility in fixed income and equities, and it is not likely to be repeated.
If you want to be exposed to $XLF, suggest covered calls on the long side due to government stimulus sustaining the markets.
The sector is likely to go down fast if the economy is left to itself and data continues to deteriorate.
Nevertheless, the 10 years does not tell a story of recovery, nor increased loan loss provisions do. Last quarter's performance was mostly driven by volatility in fixed income and equities, and it is not likely to be repeated.
If you want to be exposed to $XLF, suggest covered calls on the long side due to government stimulus sustaining the markets.
The sector is likely to go down fast if the economy is left to itself and data continues to deteriorate.