Bank of America’s Savita regularly published this report, where she highlights the institutional investors allocation. Below chart shows long-only managers are underweight financials vs history. Some of this is could be due to Mag-7 or tech weighting, or expecting insurance rates to come down, or recession fear, or rate cuts means lower NII, etc. But clearly, -1.7 z-score shows that institutional investors are significantly under weight.
From my posts, you know I am biased to the big banks, and regional banks. Still this tells me financials have more room to run, as the institutions increase their weightings.
BAC technical analyst views on XLF,
These are medium term trades, i.e., don’t try to do weekly options.