As shown by the Slope page of quarterly earnings reports, this is a very heavy week for news about banks and financial services companies:
Even though the earnings that have come in so far have had their fair share of shortcomings and warning signs, their stocks simply continue to surge higher. Of course, we’ve seen this kind of behavior before last quarter.
To my mind, it’s important to keep an eye on the very big picture. The analog hasn’t changed one bit. As always, click on the image for a bigger version, but I don’t think recent strength has changed anything about the big picture for financial securities.