While the liquidity-based freight train has yet to slow down, it's tough to define risk in a lot of places on a swing basis, as they are already fairly extended. One of the strategies in this kind of market is looking to the laggards to find areas that could play catch up if the market continues its hot streak.
Regional banks are a bucket of names that have been dogs for about 18 months, but some individual names are setting up.
Now there are plenty of fundamental reasons why this sector should stay cold-- FDIC closures are still a fact of life, the balance sheets are still toxic, and the current lending environment is more conducive to the big national banks. However, as we've seen before, liquidity trumps fundamentals. So here are the 4 names that I think will get hot into the end of the year. IWO subs got this list earlier this week. Remember that stops, position sizing, and money management are more important than the ideas themselves.