Markets Rise on China GDP, JP Morgan Earnings

      As I've noted in past posts, most I speak to think that banks are a bad bet. Much of what they say makes sense. Honestly the main thing that attracts me is their cheapness.

      As dwb points out, cheap merchandise is cheap for a reason. Still, Bank of America in particular is so cheap. Certainly buying it at $7.50 can't be risky. I mean if you buy the stock out right. My preference is the options which are always risky and is all about market timing which is a bear. Still, you could buy a call at $9 or $10 a few months or even a year out in basically be betting on the American recovery it seems to me.

      If I had to simply bet on the U.S. economy, I think we do pull through though I am real concerned about Europe; is there really any such thing as bifurcation? Well there had better be or we're in trouble.

      That China met expectations was viewed very bullishly today even though at 7.6% it was the slowest it's grown in three years (!) Wouldn't you like that problem?

      "China's economy grew 7.6 percent in the second quarter, compared to a year earlier, its slowest pace in three years. While in line with expectations, China's latest report marks the nation's sixth-straight quarter of slowing growth, with the economy headed for its softest full-year growth since 1999."

        http://www.cnbc.com/id/48174616

        Despite a surprise downgrade of Italy, Italian bond yields moderated this morning:

        "In Europe, Moody's surprised markets by cutting Italy's credit rating to two notches above junk status warning it could cut it further, helping to pile pressure on the euro zone's third-largest economy ahead of a 5.25 billion euro ($6.4 billion) bond sale."

        "But Italian three-year borrowing costs eased at a bond auction on Friday morning, coming in well below 5 percent. The Treasury sold 3.5 billion euros in bonds, at the top of its planned issue range. The Treasury sold 3.5 billion euros in bonds, at the top of its planned issue range.

       "JPMorgan Chase [JPM 35.4124 1.3724 (+4.03%) ] jumped after the financial giant beat Wall Street expectations, despite the $4.4 billion loss from the "London Whale" trading debacle."

       "We don't take it lightly," CEO Jamie Dimon told Wall Street analysts on a conference call. He added: "We're not making light of this error, but we do think it's an isolated event."

         The bank bears may well be right but I'm going to at least take a look at BAC;s option prices. Look it's basically window shopping I don't have any money right now though hopefully this will change soon-next week hopefully.

          Nanute where are you hiding buddy?