Trading Strategy – SPDR S&P Bank ETF

One of the more noteworthy developments in recent days has been the move in financials. The sector soared to record highs following comments by Jerome Powell, incoming Federal Reserve chairman, on potentially lessening regulation on banks. The SPDR S&P Bank ETF (KBE) surged more than 3 percent Wednesday, bringing its YTD gains to nearly 10 percent, slightly underperformed the S&P. Now the question is whether recent the rally has more legs? Below is an update look at a trade in KBE.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.

Chart 1.1 – SPDR S&P Bank ETF (daily)

Our “U.S. Market Trading Map” painted KBE bars in green (buy) – see area ‘A’ in the chart. KBE has been on a tear in recent days after last week’s correction found support near the 2-conjoining support, the 20-day and 50-day moving average. Wednesday’s massive rally confirmed Tuesday’s bullish reversal signal and pushed…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.


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