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A Trader’s Outlook on the Market

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    Jonathan Corpina, Meridian Equity Partners, gives his take on what’s ahead for the markets.

  • Duration 4:25
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So financials are up 19%.

Since the start of the year in which part might you want to commit some investment money -- -- John -- came as meridian equity partners senior managing partner.

He's giving us a trader's perspective on what's moving the markets look audit to do if you look at the Dow thirty here.

You can see that Bank of America.

Is right up there the top five.

As well as JPMorgan Chase of these guys are looking pretty darn good at the moment what is it about the financials you think that your clients right now are saying by.

You know I think this is on a more longer term our perspective that's there if you go back to 20082009.

This sector has been beaten down tremendously.

And at some point you're gonna start to see significant rallies coming back from it.

So how's that gonna happen -- that can happen.

What I think is gonna happen is that we're gonna continue to seek consolidation in the smaller regional banks.

And it from the bigger banks I think we're gonna start seeing them strip -- some -- there.

Nonprofit senate profit centers that aren't really up to snuff to where they need to be what we're gonna continue to see head crap.

-- cost come down.

Across the board expenses come down.

You look at the on this -- -- the JPMorgan Chase's I think has been not has shown over time that it has been.

Resilient in this sector compared to some of the others.

Obviously Jamie diamond household name there people have invested a lot -- -- From -- you see a pretty decent move here than -- -- pretty good spike in September more action and then a pullback after the election but then this little part right here is starting to look pretty decent right right in any kids consider what happened at the election I think many sectors out of an out there.

Had that selloff by the election time.

Not really knowing what the outcome is going to be like coming into this election.

It was neck in neck coming up to Election -- so I think investors.

Took a pullback at that when -- clients pick up the phone in the call you on the trading floor JPMorgan what -- names so we look at you know clients that we talked to across the board we have multi strategy client who got clients that.

Specifically look on certain sectors that are here you look at the Cattrall swaps Charles Schwab.

That is a household name I think you you get different types of investors that like to look into this could default -- to different categories.

The retail mean the advertising that's out there.

He's just feel that same chart almost 888 or -- -- -- the drop that you see a nice move down after the election and then this little pop back up so you're saying this part continues I think its part continues you're gonna see this continue to the end of the year and then moving into next year I think regulation is gonna change the way some of the banks do business.

And you're gonna see how that's gonna affect some of the indices that are there okay let's talk about health care because everybody knows now that with President Obama as president the health care law stands right at the moment.

Do you like any regions and I do I like the insurers to health care insurers and that this is more short term basis.

Talking some clients -- customers heading into the election they have some profits on the table might wanna get into some trades that are out there that they normally wouldn't and if you look at the sector here.

Same kind of effect that you saw in the financials there we got to the election.

We had to sell off right before it and now this is starting to back bounce -- looking very little today -- you look at -- you look at United Healthcare.

These types of these types of stocks clearly are benefiting.

From the election results that we've seen here -- -- -- bookstore one -- so we can get a better sense of -- the move -- here again is similar to what you see with the banks coming back up once again so now would have been a moment to five but is this a decent moments don't sit.

I think we're gonna still see this as a positive -- towards the end of the year it's really next year.

The whole fiscal cliff concept it all gets bundled into one.

How does that play moving forward I think on this one's more for short term basis okay let's talk about what you don't like.

Airlines.

I've had a love hate relationship with the airline sector there you look at airlines you've seen massive consolidation.

In the airline sector.

You're trying to see you seen some BB load numbers are down capacities are down.

The stock prices had been any fall and they've they've stayed in a very.

-- tight a range down at the bottom lower for the pretty darn good and the whole pain and we talk about what's happening in the Middle East and talking with oil clearly has an effect on the sector here.

Yes these airlines are are sophisticated enough where -- strategize been hedged out.

-- oil positions for their airplanes and for their fleets but clearly the whole correlation between what's happening in the Middle East what's happening in Europe weather patterns here.

Has an effect on this market here I don't see that.

We're gonna have a positive effect in the long term basis that they do get some positive blitzed and holidays right I mean look at this last six months for southwest it's just very choppy and range absolutely John great to have you thank you thank those airline -- for joining us we love having -- stated we -- -- on the Ford -- was.

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