Big Al45

Financial Crisis: Getting Old

Agree that stock prices of the survivor banks will bottom 3 to 6 months before the peak in bank failures. But the July 11 lows will be retested and possibly breached, before that bottom occurs.

I would not be a buyer until the retest happens. And even if that retest occurs within the next 60 days, I would wait to see 3rd quarter earnings before buying.

Financial sector XLFs won't provide much of a gain if several heavily weighted banks fail or are taken over at fire sale prices.