Banks Sell Off
Just yesterday I spoke about how the banking stocks reached their upside objective and that this would be a good time to exit a large portion of any long positions you may have on. Well that turned out to be a timely post because today news came out that regulators shut down 5 banks in Florida, Massachusetts and Michigan. As a result of this news, the BKX index was down sharply today.
The uptrend is still intact as you can see in the above chart. If the BKX were to post 2 consecutive closes below the trendline, that would change the short term trend from up to down.
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2 comments:
Volatility breakout!!!
look like we may have a test of 47. I figure that the top to the trend line is 3.5 points. A double of that distance give us 7 which subtract from the trend line give us 47-47.50 for a target to the downside. That also coincide with the high in Feb. With the possible banking clouds darkening, I would expect us to test that level by late this week to early next week. That should give us a nice place to take profit and look for a possible long entry in some beaten down financial stocks.
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