Update from 10:46 a.m. EDTLooking at the recent rebound in banking stocks, it seems investors are feeling optimistic that the financial crisis is over. OK, that's a bit of a stretch, but it's nice to see some optimism for a change -- even if it is a little premature. JPMorgan Chase ( JPM)is the new darling, closing today with a gain of $2.50 at $22.90. Bank of America ( BAC) closed almost $1 higher at $5.91. Wells Fargo ( WFC) ended the day at $13.82, up $1.94. Even the much-bemoaned Citigroup ( C) added 11 cents to close at $1.65. It's a trader's game, though. At some point, the profit taking will begin and the banking rally may disappear as quickly as it came. The crisis isn't over. Nothing of this magnitude, built over many years of complex, miscalculated gambles, is going to burst and rebuild in months.
Yet, suddenly in the last five days the banking sector is leading the S&P 500. No matter how desperately I want to believe that we've turned a corner, I just can't bring myself to trust the market -- or the banks for that matter. There are good banks out there still, and some of them deserve the gains they are seeing in the market. But let's not kid ourselves. It's too soon to celebrate.