XLF: Bank Earnings and House Financial Services Committee will question Warsh tomorrow (Tuesday) at 10:00 a.m. EDT

If you are day trading tomorrow (Tuesday) there could be volatility in the market during Federal Reserve Chairman Kevin Warsh first testimony before the House Financial Services Committee tomorrow at 10:00 a.m. EDT.

We don’t know what to expect because this will be his first. Lawmakers will push him to get his opinions. He says he wants to shrink the balance sheet but at the same time feels pressure to lower rates. Could be nothing but I’m going to sit out until he is done speaking so I can get a feel for his style.

You can view the live proceedings and the monetary policy report directly on the U.S. House Financial Services Committee website.

https://financialservices.house.gov

Use caution.

Also we have Bank earnings all week which are expected be good. If there are any downside surprises Tuesday while the markets are expecting these to be good it may affect direction of the markets heavily. Tuesday is the largest group of banks reporting. Chart I posted is the 1yr XLF showing double topping formation. I would expect it to break to the upside if the earnings numbers beat heavily.

Earnings…

Tuesday

Wells Fargo

Goldman Sachs

Bank of America

Citi

JP Morgan

Wednesday

PNC

BlackRock

Morgan Stanley

Thursday