Money Flows Into Banking Sector
Today, Citigroup
(
C |
Quote |
Chart |
News |
PowerRating),
announced that its fourth-quarter profits rose 11 percent. That was in line
with Wall Street expectations of 65 cents. Initially, the financial giant’s
stock price fell about a dollar, but it has recovered to a gain of nearly the
same (as of 11:20 CST). Those earnings were good enough, without surprises
such as bad loans, to lift the entire sector.
What should jump off our real-time Dow Basket displayed below (as of
11:20 am CST) is the ratio of Dollar-Weighted Calls to Puts trading in Citicorp
and JP Morgan Co.
(
JPM |
Quote |
Chart |
News |
PowerRating).
Obviously, the fact that the banking sector is reporting earnings today has a
lot to do with the interest, but the $W Call Volume in JPM is 170,900 to just
3,890. Likewise, C $W Call Volume is 139,359 to 2,350. This tells us that the
institutional money is flowing into calls (BULLISH) rather than looking for
protection (PUTS).
Here’s our list of $ Weighted Dow Basket Put/Call
Volumes:
is our real-time index volatility list as of 11:27 CST:
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