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Should you be Preparing for a Financial Breakout?

Financials are rallying after a one year downtrend.

On today's Halftime Report MKM Chief Market Technician, Jonathan Krinksy, discusses why financials should be on your radar.

Financials in focus

Krinsky believes the uptrend in the financials could continue and we could see a breakout.

"If you're look at the performance over the last 6 weeks the financials are the third best performing sector. We're seeing rotation out of the high dividend yield sectors. The call here is that for the first time in about 12 or 16 months the financials are no longer in a down trend," he said.

So which financials are on his buy list?

"A couple of the regional banks, Regions Financials, Zions Bank,and J.P. Morgan look good here to us. Berkshire Hathaway is almost at a new high…as the breadth in the financial sector broadens out you can expand your buy list," Krinsky said.

While Trader Joe Terranova agrees with Krinsky's bullish call, he also thinks REITs are one thing to keep in mind when considering buying the financials. But, Jonathan Krinsky isn't so sure. He says the sector is a sell.He argues they are vulnerable and trade in tandem with the high-yield areas,such as staples and utilities, than with the financials.