Dear EarningsBeats Digest Member,
Banks ($DJUSBK) have been hit hard, dropping 42% over the past month. Given the deteriorating economic conditions and the recently falling treasury yields, much of the selling is likely deserved. But have we seen too much? And are there opportunities among some of the relative leaders in the group? I've seen so many gap downs at the open with buying throughout the trading day and it certainly makes me wonder if accumulation is taking
place. It'll be very interesting to see how relative leaders with breakouts in their accumulation/distribution perform as we move forward. It would suggest to me that institutions could be using the market's weakness to accumulate shares among industry leaders. As an example, check out this chart:
