Major Banks Have Negative Technicals, Show Earnings Thursday

Three of the four "too big to fail" money-center banks, Bank of America (BAC - Get Report) , Citigroup (C - Get Report) , JP Morgan (JPM - Get Report) and Wells Fargo (WFC - Get Report) , report earnings before the opening bell on Thursday. The biggest winner since the election, Bank of America does not report its results until April 18.

Among the five super regional banks, BB&T Corp (BBT - Get Report) , M&T Bank (MTB - Get Report) , PNC Financial (PNC - Get Report) , SunTrust (STI - Get Report) and U.S. Bancorp (USB - Get Report) , only PNC Financial reports before the opening bell Thursday.

Citigroup and Wells Fargo are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells C or WFC? Learn more now.

All nine of these major banks bottomed on Election Day and peaked as March began. Bank earnings are thus extremely important, as the first quarter of 2017 does not include the benefits of the removal of the regulatory burdens of the Dodd Frank law.

I have been publishing warnings about these banks since studying the FDIC Quarterly Banking Profile for the fourth quarter. My theme was that these stocks may have rallied too far, too fast. The Federal Deposit Insurance Corporation data showed that progress of healing from the "Great Credit Crunch" stalled as 2016 ended.

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Here are the slides for the four major banks reporting quarter earnings before the opening bell on Thursday.

Here's a scorecard for nine of the biggest regional banks
Here's a scorecard for nine of the biggest regional banks

Courtesy of Global Market Consultants, Ltd

Bank of America reports earnings on April 18 and is 39.4% above its post-election low, but is 9.7% below its March 2 high.

Citigroup reports earnings before the opening bell on Thursday and analysts expect the bank to earn $1.24 a share. The stock is 21.9% above its post-election low and is just 3.5% below its March 1 high.

JPMorgan reports earnings before the opening bell on Thursday and analysts expect the bank to earn $1.51 a share. The stock is 24.9% above its post-election low and is 8% below its March 1 high.

Wells Fargo reports earnings before the opening bell on Thursday and analysts expect the bank to earn 97 cents a share. The stock is 23.4% above its post-election low and is 7.7% below its March 1 high.

M&T Bank, PNC Financial and SunTrust remain in bull-market territory vs. their post-election lows. BB&T Corp, M&T Bank and SunTrust are in correction territory vs. their March 1 highs.

PNC Financial reports earnings before the opening bell on Thursday and analysts expect the bank to earn $1.84 a share. The stock is 24.6% above its post-election low and is 9.9% below its March 1 high.

Citigroup (C)
Citigroup (C)

Courtesy of MetaStock Xenith

The weekly chart for Citigroup is negative, with the stock below its key weekly moving average of $59.28 and above its 200-week simple moving average of $50.72. The weekly momentum reading is projected to decline to 60.21 this week. Buy Citigroup on weakness to my quarterly value level of $52.27. Sell strength to my semiannual and monthly risky levels of $64.78 and $66.24, respectively.

JP Morgan (JPM)
JP Morgan (JPM)

Courtesy of MetaStock Xenith

The weekly chart for JPMorgan is negative, with the stock below its key weekly moving average of $87.61 and above its 200-week simple moving average of $63.33. The weekly momentum reading is projected to decline to 49.23 this week. Buy JPMorgan on weakness to my quarterly value level of $82.68. My annual pivot remains at $84.24. Sell strength to my semiannual risky level of $89.26.

Wells Fargo (WFC)
Wells Fargo (WFC)

Courtesy of MetaStock Xenith

The weekly chart for Wells Fargo is negative with the stock below its key weekly moving average of $55.95 and above its 200-week simple moving average of $50.59. The weekly momentum reading is projected to decline to 44.78 this week. Buy Wells Fargo on weakness to my quarterly value level of $49.68. My annual pivot remains at $55.97. Sell strength to my monthly risky level of $57.51.

PNC Financial (PNC)
PNC Financial (PNC)

Courtesy of MetaStock Xenith

The weekly chart is negative, with the stock below its key weekly moving average of $120.93 and above its 200-week simple moving average of $89.86. Weekly momentum is projected to decline to 44.30 this week. Buy weakness to my annual and quarterly value levels of $112.67 and $105.35, respectively. Sell strength to my weekly and semiannual risky levels of $123.65 and $127.70, respectively.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.