Many people bought bank shares last year because they were cheap. Guess what? They got cheaper.
This is a comparison of-XLF and the falling yield for 10 year T-Notes.
This is a a NON-INVERSE relationship.
If yields keep falling, banks will have a very hard time making money on interest rate spreads.
Some regional banks may buck this trend, but I believe most will not.
If crude slips below $40 per barrell, many banks will have non-performing loans with oil companies.
My conclusion, XLF-grinds lower as 10 year T-Bill yields continue to fall.
Good luck to you with all of your trades. Don.