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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV