The markets are in rally mode as fear is fading around the globe. Earnings are giving investors a fresh reason to buy the markets and the Dollar is dropping. Yesterday, International Business Machines Corp. (NYSE:IBM) reported solid quarterly results. This morning, more great reports emerged from the likes of The Coca-Cola Company (NYSE:KO) and Wells Fargo & Company (NYSE:WFC). On the slightly negative side, Bank of America Corporation (NYSE:BAC) and Goldman Sachs Group, Inc. (NYSE:GS) both reported earnings that did not meet Wall Street expectations.
Overall, the earnings picture has been good and the markets are rejoicing. In terms of a solid risk reward play, it appears Bank of America is at a level which is now finally attractive. The negative earnings loss of $8.8 billion should be factored in by the close today, and the overly bearish sentiment on the financial stocks near a climax. When all others hate it, start loving it. That is the golden ticket.