On Thursday Wells Fargo announced early Q1 profits of $3 billion which had a nice ripple effect on financials and the market in general. One ETF in particular had a great day – FAS. FAS is  a Financials ETF that tries to beat the Russell Financials 1000 by 300%. Here is the FAS list of top holdings. If JP Morgan sees any kind of lift similiar to Wells, this ETF should see a pretty big bump as it represents 7% of the portfolio.  JP Morgan announces earnings April 16th.

There are some out there who aren’t as bullish on the financial market. They feel that Wells isn’t telling the complete story, including holding back on the charges stemming from the Wachovia deal. Then there is the better advice seen here. Investors should be cautious and protect themselves with both short and long investment strategies. With your short investments, remember to sell off the gains and not to stay in too long. These types of rallies are irrational and one can never predict what the next day will hold.

I think Steve Miller has the best advice on what to do with the latest rally.