“The Party Is Over” for Housing — and Bank Earnings: Chris Whalen

DailyTicker

Stocks were down midday Wednesday but, let’s face it, the market is holding up extremely well so far in the face of the government shutdown and looming debt-ceiling fight. That said, market watchers are increasingly concerned about recent weakness in the financial sector.

Using the Financial Select Sector SPDR (XLF) as a proxy, financials have underperformed the S&P 500 for the past 1- and 3-months, after outperforming in the prior 6-months, and 1- and 2-year timeframes.