October is a perfect study in how quickly stocks can fake you out. (SPY) dropped more than 10% from high to low and erased all of its gains of the year in the course of a month.

The Financials sector ranks ninth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 46 ETFs and 232 mutual funds in the Financials sector as of July 15, 2014.

Stocks continue to consolidate just under their prior high, which is offering formidable resistance.