Aggressive traders can use the Direxion Daily Financial Bear 3X Shares (NYSEArca: FAZ), ProShares UltraPro Short Financials (NYSEArca: FINZ) and Direxion Daily Regional Banks 3x Bear Shares (NYSEArca: WDRW) to capitalize on any further downside from bank stocks and the broader financial sector.
Some analysts and traders argue that investors should be careful in making bullish bets on the financial services space, the S&P 500’s second-largest sector allocation, leading up to earnings season. In fact, analysts currently are not all that enthusiastic regarding bank stocks.
Some strategists also argue that the financial sector may be a good area to look at this time around, given the potential for growth in a rising rate environment, along with potential tax and regulatory changes under the Donald Trump administration.
“Citigroup is expected to move 3 percent in either direction on Thursday’s earnings report while JPMorgan and Wells Fargo have implied moves of over 2 percent on earnings,” according to CNBC.
For more information on the financial sector, visit our financial category.