The benchmark 10-year Treasury note yield rose to 2.98 percent Wednesday, following yields in Europe after the European Central Bank hinted at winding down its asset-purchasing program. Shares of J.P. Morgan Chase, Bank of America and Morgan Stanley all rose more than 2 percent. The widely watched SPDR S&P Bank ETF (KBE) gained 2.1 percent, bringing its YTD gains up to 7 percent, outperformed the S&P by a wide margin. Now the question is whether 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 (weekly)
Our “U.S. Market Trading Map” painted KBE bars in green (buy) – see area ‘A’ in the chart. Over the past few weeks, KBE had been trending higher after the March correction found support near the 4-year moving average. This week’s rally pushed the ETF above the 20-week moving average…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.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
Subscribe to CEM News to receive more in-depth research from Capital Essence.
P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.