Financials Have Bottomed, Episode 1

Calling market bottoms is a fool's game, but what the hell, I can't help myself. The key to calling bottoms is persistence: even if you're proven wrong time and time again, just keep spouting off "we've bottomed" and eventually you'll be right! Thus begins my first installment of a series I like to call "Financials Have Bottomed".

With Madoff in jail, his accountant on the way, and Congress finally putting the smack down on AIG (if you can call clawing back 163 million from a total of 173 billion a "smack down"), we're finally getting some vengeance. I think vengeance is a key step toward market recovery. Now all we need is Samuel L. Jackson in Congress.

Take a look at the charts. It looks like a lot of these financial names are breaking out of the downtrends. Most are now trading above the 50DMA - and this hasn't happened since last September.

MA:

BAC:

GS:

JPM:

XLF:

V: