Banks can't get out of their own way but I like it. Earlier this morning, shares of JPM were down 3.2%, BAC down 5.5%, C down 5.4%, and Wells Fargo was dropping 5%. Will they go lower? Yes, I think so. Although it is unlikely that a moratorium on foreclosures will be instituted, the fear of such a stoppage is going to weigh on shares in the short term. I've mentioned before that a moratorium won't happen but not everyone knows that. These weak hands flee on any sign of trouble and their selling presents opportunity.
This doesn't mean that traders should blindly buy when trouble rears its head however. I've mentioned before that I prefer to buy shares on strength instead of weakness. With the bank shares sliding, I'd take a wait and see approach before starting any positions but I like the banks for trading. I'd never hold them long term however because they blow up every now and then and destroy capital like nothing else.
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