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Citigroup, JPMorgan and Wells Fargo Headline Earnings


NEW YORK (TheStreet) -- After the first full week of 2014 the S&P 500 is down just 0.3% for the year, while the SPDR Finance (XLF) is up 0.8%. Today I am providing my buy-and-trade analysis for 12 components of this finance ETF that report quarterly results this week. Nine of the 12 out-performed the finance ETF led by two of the four ''too big to fail' money center banks, Bank of America (BAC) up 7.7% since the end of 2013 and Citigroup (C) up 5% year-to-date.

The only bank that does not have a year-to-date gain is 'too big to fail' JPMorgan (JPM), up a penny.

There are three banks that have shrugged off the entire financial crisis and traded to new all-time intra-day highs or close to new highs last week. JPMorgan is still below its all-time high at $67.17 set in early-2000. The fourth 'too big to fail' money center bank Wells Fargo (WFC) traded to a new all-time intra-day high at $46.20 on Thursday. Commerce Bancshares (CBSH) traded to a new all-time intra-day high at $46.03 on Thursday.

The finance sector is 23% overvalued in a stock market where 84.4% of all stocks are overvalued with 53% overvalued by 20% or more. Among the 12 regional banks 11 are overvalued by more than 20% with four overvalued by more than 40% with Citigroup the most overvalued by 53.7%.

I give the finance sector an equal-weight rating as 84.3% of the 2963 stocks in the sector have '3-Engine' hold ratings.

The SPDR Finance ETF ($22.03) set a new multi-year intra-day high at $22.10 on Jan. 9. The weekly chart profile is positive but overbought with the five-week modified moving average at $21.53 and the 200-week simple moving average at $16.16. My monthly and semiannual value levels are $21.42, $20.24 and $19.44 with a weekly risky level at $22.17 and a quarterly risky level at $23.38.

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