I agree. I think the reaction in XLF and KRE to a day of yield-curve steepening is short-lived, and today’s strength offers a better price for a multi-month short trade.

Yeah but one day doesn’t make a trend & overall, the banking sector ($BKX) as a whole has been sucking wind since peaking back at the end of 2021 & severely lagging the broad market (which was pretty much just driven up by big tech) & much closer to multi-year lows than making a MY high. Plus, it only takes one bad apple to ruin the bunch, especially if it’s a TBTF or (as with the slew of regional banks that failed earlier this year) not currently on the TBTF list but will be retroactively added (as those were) once they do. I would put SCWH, among many other financial stocks on that list.

Not yet, at least not the breakout above that downtrend line off the highs. Ideally, want to see a solid move back below it & all the better for a solid daily close back below it.