I have a long bias and believe anything below $14 will be a good buy in the long-term. I think significant earnings upsides for 2010 are still there for financials and especially the major firms and valuations are still attractive for the best of breed firms. Most major banks have repaid their TARP loans and continue to benefit from the steepest yield curve in decades. I see that yield curve only becoming steeper in the near term even if the Fed begins to tighten on the short end.
My only caution comes from the technical picture in the likes of JP Morgan and Goldman Sachs who saw drastic selling the last few days. These stocks may take a few weeks to recover from such a painful sell-off. So, I'm just dipping a toe, not doing a cannonball in yet.
