🏦 QM Trades Insight – Bank Stocks Surge: Fed Cuts and Deregulation Fuel a Fresh Rally

Quantmatix Insights

U.S. bank stocks are rallying into year-end, with over 50 names flipping positive in our Quantmatix data since late November. The boost comes from cooling inflation, expected Fed rate cuts, and regulatory tailwinds, as consolidation accelerates across the sector.

Wall Street giants and regionals alike are moving: BAC +0.6%, GS +3.5%, WAL +4.7%, MSBI +21%, while asset managers like ARES and KKR ride broader optimism.

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📈 ETFs Leading the Reversal

• SPDR S&P Capital Markets (KCE): $149.69 → Target 1 $154.83, Hit 73%, Stop $137.23 ⚡️

• Financial Select Sector (XLF): $53.68 → Target 1 $55.01, Hit 68%, Stop $50.42 💰

• iShares U.S. Financials (IYF): $126.95 → Target 1 $129.83, Hit 69%, Stop $118.54 🏦

• SPDR S&P Regional Banking (KRE): $64.72 → Target 1 $66.82, Hit 59%, Stop $57.16 🌎

Relative strength vs the S&P 500 shows clear sector outperformance.

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💎 Top Bank & Financial Plays