SPDR KBW Bank (ETF) (KBE)

I think the regional banks reporting this week, especially in ohio/michigan/illinois and the southeast are going to have terrible earnings in addition to the market and in particularly finance stocks being way overbought. These little regional banks don't have the same resources for masking their loan and credit losess as a C, BAC, or GE capital. C sold Smith Barney, BAC sold China Commerce and GE capital receives injections from it's parent which really helps inflate the numbers, but revenue is disgustingly bad. So far most of the regionals that have reported haven't had atrocious earnings when compared against estimates, but they are all suffering major writedowns, credit losess and their true valuations are being seen. You've got $18 banks earning .8 cents a quarter. these banks need to stop being valuated based on Trailing earnings eventually and when they're based on 2010 earnings, the picture doesn't look much better than Q2.