Bank stocks stole the show during last Friday’s rally. The Financial Select Sector SPDR Fund (NYSEARCA:XLF) soared 2% on heavy volume, making it the top performing sector for the day. Credit for the renewed interest in financials goes to President Donald Trump, who signed an executive order designed to scale back the Dodd-Frank Act.
Nothing like a whiff of deregulation to whip bank stocks into a frenzy.
The rally that seized the financial sector in the wake of Trump’s successful White House bid last November had stalled out over the past two months. So Friday’s news was the much-needed catalyst to spur the sector’s next leg higher.
Bank stocks across the board are now testing resistance, making breakouts imminent. Here are three of the top financials to watch for the week ahead, and quick trade ideas on how to capture the moves.