Banks and Financials from XLF were all over the news this morning

SEC seeks to widen BofA suit. The SEC requested court permission to expand its lawsuit against Bank of America


Banks may face clawback fees. Obama may propose a fee on banks to help reduce the deficit


Cuomo targets bank bonuses. New York Attorney General Andrew Cuomo requested information on 2009 bonus plans from eight major TARP recipients, including Bank of America


Banks may get special bankruptcy court. Lawmakers are considering the creation of a special bankruptcy court for financial firms


China raises reserve ratio. The People's Bank of China increased bank reserve ratios this morning by half a percentage point, effective January 18.


New primary dealer rules. The New York Federal Reserve announced a tighter set of standards for primary dealers, including a much higher minimum net capital level


Record profit for Fed. According to calculations by The Washington Post, the Federal Reserve booked a $45B profit last year, the highest earnings in its 96-year history. Much of the profit came from Fed bond purchases aimed at driving down interest rates.


This last post about the Fed is worth writing a  PhD thesis.  The Fed Chairman is a genius and genius is a bull market.  I am currently updating my XLF chart for posting later today.
N.B. note well that BAC was upgraded last week.  Is there a reason why these analysts seem to always upgrade a stock at the top of the run?  When I was a NASDAQ market maker the saying was, "When the Ducks quack, feed them".