Here we go financials...

I was expecting the other shoe to drop today on financials, as more big names announce earnings this week. I had also expected some negative news out of National City as well.

With the announcements made by Bank of America and Nat City, I think we are well on our way to the financial sector recovering from its December-January Bear Stearns slump.

The financial sector itself has depressed for several months, with rising inflationary concerns coupled with sub-prime mortgages. However, after this week, my expectation is that the volatility and negative sentiment for this sector will be over. The major banks have laid their problems all on the table, and while there is no smooth sailing, we should expect nothing in the way of surprises in the near future.

At the same time, the tech sector continues to feel good about itself, still drunk on Google profits, and never-ending Yahoo/Microsoft merger deal.

By Friday, I expect to be purchasing both XLF and QQQQ, the financial and Nasdaq ETF respectively.