Tanona issued his report after Citigroup strategist Levkovich on Nov. 16 upgraded the banking sector, saying it has "compelling valuations and beaten down earnings estimate revisions, not to mention repulsive sentiment around these stocks, a contrarian signal."
From the same article:
Banks have announced more than $50 billion of write-downs tied to the U.S. housing slump, as defaults soared and the value of mortgages that investors deemed too risky plummeted.
That's right -- $50 billion in losses means the sector is "oversold". Anyone who takes that advice deserves to lose money.