Here is an excerpt from Thursday morning's Quick Takes Pro:
Smoked banks. Downgraded banks. And the BKX has fallen off a cliff.
Here we are several days after JP Morgan's big loss. The
math says that the loss was a small percentage of their overall business but
the stock is still easing lower. If this was such an "absorbable"
loss then why is this happening? Analysts fell over themselves to say how this
is now one cheap stock but the market seems to be saying something different.
Where there is smoke, there is fire.
How many times has this axiom proved prophetic
over the years, especially in bad markets?