JPMorgan's miss on both revenue and earnings strengthens the case for avoiding bank and financial stocks. The earlier bank-index chart rollover had suggested possible profit disappointment, but the observed JPMorgan share weakness is not a near-term price forecast. x.com  x.com  x.com 

Morgan Stanley and Goldman Sachs face a negative multiplier effect as worries about the return on AI capital spending start to be priced into tech. After 18 months of enthusiasm about AI spending returns, CNBC Halftime panelists are now finally concerned about its ROIC. That suggests the concern is being discounted in tech prices, which hurts related areas like brokerages that the show's investment committee has embraced. x.com 

Bank negativity may be priced in for Goldman Sachs, Morgan Stanley and Bank of America; stable credit and an active deal pipeline could bring relief. Goldman and Morgan Stanley are down about 14% in three months and sit 22% and 17% below their highs, respectively; Bank of America lost 13% in a month. x.com 

Banks' weak response to earnings despite low expectations warrants caution into the rest of Q3 reporting. JPMorgan, Wells Fargo, Citigroup and Goldman Sachs all fell after mixed results, while the bank ETF also declined. x.com 

Financials could be bottoming as major institutional accumulation meets extreme relative weakness. The Financial Select Sector SPDR Fund has been compressed near $50 for 17 months, saw its second record-level volume accumulation last month, and its six-month candle is sweeping lows while defending the largest institutional support on record. It is reclaiming its all-time-high anchored VWAP after a bullish engulfing candle, with no sell pressure. A drop back below $50.70 would be unwelcome. x.com  … Show more

Morgan Stanley is the better way to play the same bullish chart setup also seen in Goldman Sachs. Morgan Stanley carries 50% less debt, has faster-growing assets under management and a stronger footprint among financial analysts. x.com