The banks will kick of their earnings season this week so we thought we’d show Twitter sentiment for five of them to get a feel for what traders tweets think of them before they report. We’ll start with the good then move on to the bad and ugly.
Goldman Sachs (GS) is looking great and tweets about the stock are overwhelmingly positive. Daily sentiment hasn’t seen a day below zero in a month. Smoothed sentiment is continuing to confirm the price move. Just what we want to see in a stock in an uptrend.
Citigroup (C) is looking about the same. It has a few more negative days than GS, but smoothed sentiment is continuing to rise which is a good sign.
Bank of America (BAC) is looking the worst from a price perspective and sentiment is following price. Smoothed sentiment is still above zero and we don’t have a huge divergence yet so there’s a good chance that BAC will resume its uptrend after some consolidation.
JPMorgan Chase (JPM) has had a small negative divergence with price over the past few weeks. Concern over upcoming earnings and profit taking have taken its toll on sentiment. It has broken its uptrend line which signals that it might need some consolidation before moving higher. Of course a good earnings report would negate any concerns from sentiment.
Morgan Stanley (MS) looks the weakest of all the bank stocks with a negative divergence that has lasted over two months. Traders have been taking profits as the stock rises. There have been enough negative tweets over the past several days to take smoothed sentiment below zero and also break its recent uptrend line. MS needs some good news that encourages traders to clear the current warning.
One thing to note is that all of the bank stocks are still in an uptrend so the waning sentiment in some of them isn’t a large concern. How these stocks and Twitter sentiment react to their earnings reports will give us more clues to their next moves.