Financials opened very strongly this morning, filled the gap and are back at the highs (XLF at 14.60). I think that further strength here could be a huge catalyst for getting the S&P 500 to my intermediate-term target of 1250 (currently at 1155).
Financials are the 2nd largest sector (after Tech) despite their relative weakness since 2007. I find them to be very cheap and priced pessimistically. With that said, they are very complex and much more challenging for me analytically than other sectors (I like Health, Tech, Industrial, Consumer Discretionary and Staples and even Utilities more from that standpoint).
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