Trader, here’s how to dodge the painful punches…

In boxing, the idea is to hit without getting hit. Unfortunately, you can’t slip every punch. The trick is to avoid the ones that hurt.

Trading is like that.

You never want to hear “Good night Irene – it’s lights out!”

No trading strategy is 100% fool-proof, losses are part of the game. 

But suppose you lose half your trades. What if you could shrink that loss rate down so you’re winning on more trades?

And what if you could shrink each individual trade loss to the bare minimum?

This could launch a new lifestyle of trading without fear of taking hits. 

It could lead to a $100,000 payday on your next 12 trades.

How?

All it takes is this simple trading tweak.

See how here

Happy trading, 

Thomas Wood
Head Trader
Base CampTrading

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More Reading from MarketBeat Media

Bank Stocks Get Punished After Earnings—Is Valuation the Real Problem?

By Chris Markoch. Posted: 1/15/2026. 

Summary

• Shares of major banks, including JPMorgan, Bank of America, Wells Fargo, and Citigroup, fell 4%–6% after Q4 2025 earnings, despite mostly solid results.
• High valuations and policy uncertainty—particularly around proposed credit card rate caps—have weighed on sentiment.
• Bank of America appears better positioned as a buy-the-dip candidate, given its stronger fundamentals and lower credit risk exposure compared to peers.

Earnings season is off to a rough start. That “Oooof” you hear is investors sighing as the last three months of gains in bank stocks evaporate after banks report earnings.

It started with JPMorgan Chase & Co. (NYSE: JPM). The bank, widely considered best in breed, saw its stock drop more than 5% despite reporting a double beat and Jamie Dimon’s optimistic remarks about the health of the consumer.

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That trend continued after reports from Bank of America (NYSE: BAC) and Wells Fargo & Co. (NYSE: WFC). Their stocks fell about 4.9% and 5.5%, respectively, in midday trading after each bank reported earnings on Jan. 14.

Bank of America delivered a broadly solid report with topline and bottom-line beats, while Wells Fargo produced a mixed report in which revenue missed analysts’ expectations.

Valuation Could Be the Canary in the Coal Mine

A common denominator among these three “big banks”—and Citigroup Inc. (NYSE: C), which also fell more than 4.5% after earnings—is lofty valuation. Each trades at a price-to-earnings (P/E) ratio above its historical average, and their price-to-book (P/B) ratios sit above the industry median.

The takeaway: these stocks were priced for perfection—assuming the rules of the game stayed the same. A recent headline called that assumption into question.

The Headline Supporting a Strong Sell-Off

Heading into 2026, bank earnings were expected to kick off strongly. But news that the Trump administration is considering capping credit card interest rates at 10% has become an overhang—banks such as Bank of America and Wells Fargo say it could hurt their business.

However, consumers—supposed beneficiaries—could face reduced access to credit despite lower rates.

Still, the proposal is unlikely to happen: analysts doubt the administration could impose such a mandate by executive order, and Congress is likely to resist a policy that might harm economic growth even as it addresses affordability concerns.

Strong Results Suggest BAC’s Pullback Was Sentiment-Driven

Bank of America’s quarter was solid across the board, making the post‑earnings pullback appear driven more by sentiment and valuation than by fundamentals.

Net income rose to $7.6 billion, with EPS up 18% year‑over‑year (YOY), supported by 7% revenue growth, 10% net interest income growth, and positive operating leverage as the efficiency ratio improved to 61%.

Balance‑sheet quality held up, with average loans up 8%, deposits up 3%, a CET1 ratio of 11.4%, and a net charge‑off rate of just 0.44%. Management guided to 5%–7% net interest income growth in 2026, suggesting earnings power should continue to compound even in a lower‑rate backdrop.

A Mixed Quarter Highlights Wells Fargo’s Transition Phase

Wells Fargo’s results were more nuanced but not weak. Revenue grew 4% YOY, with net interest income and noninterest income each up 4%–5%, and pre‑tax, pre‑provision profit up 17%, signaling improving core profitability.

However, the efficiency ratio remains elevated at 64%, and the quarter included $612 million in severance, underscoring that Wells Fargo is still in the middle innings of its restructuring and cost‑takeout effort.

Credit quality is acceptable but shows signs of moving later in the cycle: net loan charge‑offs were 0.43% of average loans, and the allowance for credit losses stands at 1.45% of loans, with elevated reserves tied to commercial real estate office exposures.

Bank of America or Wells Fargo—Which Dip Is Worth Buying?

A better question: is either bank worth buying after the pullback? Both charts look similar and remain in uptrends so long as prices stay above the 150‑day simple moving average; Relative Strength Indicator (RSI) readings suggest selling may be overdone.

BAC appears to be the higher‑quality buy‑the‑dip candidate—more diversified earnings growth and lower credit tail risk—while WFC offers greater leverage to a benign credit and rate backdrop for investors willing to tolerate more volatility.

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