Right now investors are bracing and expecting the worst out of the Financial sector this quarter. However, don't forget that these guys make Houdini jealous when it comes to PFM. In the last couple of quarters we've seen the "Tier 3 Shuffle" - where banks increases Tier 3 assets a quarter before the EOY. I have a hunch this could result in a "not as bad as expected" reporting quarter sparking some kind of rally. Am I betting on this? No. What I'm waiting on is if this happens I can get some short positions up higher because once the Tier 3 assets start hitting the books again earnings will actually reflect what people were expecting this quarter, but it'll be next quarter.
I don't give this high probability, but it's just a scenario I've considered.
