Big Bank Earnings Is One of the Most Significant Events of 2014 – And It Could Bring You a Fortune

[Editor's Note: This preview of big bank earnings this week - and how to profit - is one of Gilani's Wall Street Insights & Indictments columns this week. To get all of Gilani's insights as soon as they are released, click here.]

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The big banks are all reporting their fourth-quarter earnings this week.

Make no mistake: Although it's only January, this will be one of the most significant events of the year…

You see, in the big picture, how the banks fare and what their future prospects are could single-handily determine the trajectory and breadth of the recovery we've been hoping for.

Even more, their "financials" could have major implications for your money.

Depending on what happens, it may be time to take profits if you own their stocks. It may even be a good time to selectively short the financials – and make a killing doing so.

Today, I'm going to share with you how I think the whole thing will play out.

Then, I'm going to give you a special bonus:

An opportunity to make a nifty profit off of the big bank earnings reports – including one of the fattest dividend payments you'll see in your lifetime…

Big Bank Earnings: What's in Store?

Almost all of Wall Street's big banks – JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC), Bank of America Corp. (NYSE: BAC), and Citigroup Inc. (NYSE: C) – are trading at or very close to their post-crisis highs, with Goldman Sachs Group Inc. (NYSE: GS) being the only exception.

The "financials" have been front and center this whole rally.

The question now is, will their earnings – most of them have been posting record or near-record numbers – continue to grow, or will the Volcker Rule and approaching Basel rules and the new QM (qualified mortgage) rules dampen their earnings power?

As I said, when it comes to the economy, a lot rides on America's banks. Far too much, in my opinion. These guys haven't lost a beat since the financial crisis. They're still here, and bigger and more frightening than ever. It's sickening, but it is what it is.

You know exactly what I'm talking about…

Join the conversation. Click here to jump to comments…

About the Author

Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Short-Side Fortunes, Shah shows the "little guy" how to make massive size gains – sometimes in a single day – by flipping large asset classes like stocks, bonds, commodities, ETFs and more. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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