Financials Update: Super regionals remain better for sale short into strength by HFs.

FINANCIALS: After slightly underperforming the tape last week, the sector is edging out the SPX in today's trading on well-received New Home Sales data. Volumes are decelerating as the tape moves higher and into mid-day. Flows are balanced between buyers and sellers, with HFs and vanillas active on both sides. In banks, we're seeing HFs cover and vanillas pick away at both the money centers. Super regionals remain better for sale short into strength by HFs. Smaller cap banks have small vanilla buy interest. Asset managers continue to be active in the midst of earnings for the group. We are better to buy for long-onlys and HFs (getting long) today following Friday's sell-off on TROW earnings. In insurance, we're seeing the classic rotation into beta today with money going into life insurers and out of non-life insurers. HFs are active in this trade. This coming week, earnings will be the main driver of the group (all sub-sectors active) followed by the Beige Book and some select housing data (Case-Shiller).