Yesterday's sell off gave us a little bit of a reality check, which in my mind, was deserved. The financial stocks traded way too high for the amount of news that spurred the rally. Now the question is, is there something worth buying? The answer is, there isn't much that seems like a value now. Energy stocks seem like a relative value, only if you believe that oil prices won't drop further from here. I lean more to that camp that the buy financial stocks camp, which has been no secret for anyone reading this blog.
If earnings were our positive catalyst, then economic data will be our negative catalyst. If you balance the two, I can't say I see a strong move up or down from here. The strength in financial stocks is now priced into the market, as well as the economic weakness.