NEW YORK (TheStreet) --The post-election stock market rally, dubbed "The Trump Rally," caused bank stocks to launch higher. Several individual bank stocks climbed 30% to 40%, while the SPDR KBW Regional Bank ETF (KRE) is higher by 17% since last week's election.
"I think we are the end of this part of the post-election move," Crossing Wall Street Editor Eddy Elfenbein said on CNBC's "Power Lunch" this afternoon. "This has been a tremendous rally for bank stocks, the sector just doesn't normally act like that."
In just four days, the S&P bank index shot up 14% and stocks like Goldman Sachs (GS) were able to add to its market cap significantly.
"I think that was a change in sentiment, I don't think we can count on the rally going forward," Elfenbein stated.
The moves in the bank stocks have come because of the possibility of looser regulations and a re-introduction of Glass-Steagall under a Trump administration, he added. However, Elfenbein cautioned that those policies remain to be seen.
"In the short-term, the sentiment rally ended on Monday. Going forward, I think we're just in another part of the cycle of where bank stocks look," Elfenbein said.