As TD Ameritrade's JJ Kinahan noted last week, “The financial sector is forecasted to report year-over-year earnings growth of 6.8 percent, the third highest out of the 11 sectors in the S&P 500, according to FactSet. At the industry level this quarter, only the insurance industry is expected to report double-digit earnings growth (20 percent); if the insurance industry is excluded from the financial sector’s estimated earnings growth rate, it would drop to 3.8 percent from 6.8 percent, also according to FactSet.”

Among the marquee bank stocks reporting second-quarter results this week are Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo Co. (NYSE:WFC). Those are three of the top 10 holdings in the index FAS and FAZ track as those stocks combine for about 16 percent of the index's weight.

In advance of second-quarter earnings, some data points suggest traders are already rotating to FAS and FAZ. For example for the five-day period ended July 6^th, volume in FAS was 16 percent above the trailing 20-day average, according to Direxion data. Volume in the bearish FAZ also saw a modest increase over that period. 

The combination of earnings and Fed commentary could also spark interest in rate-sensitive regional banks. Those scenarios could be short-term catalysts for the Direxion Daily Regional Banks Bull 3X Shares (NYSE:DPST) and the Direxion Daily Regional Banks Bear 3X Shares (NYSE:WDRW).