The Closing Print live trading and financial blog during market hours.

Banks are breaking out of solid bases.

The S&P500 SPDR Financial Sector ETF (XLF) broke out of a short duration, descending channel on Wednesday. RSI, MACD and stochastic suggests this bullish action could continue.

Price is above the 9/20ema so most traders would do well by focusing on banks and insurance companies. Fund managers are obviously buying shares in anticipation of increasing profit margins. The FED will raise rates soon.


BB&T Corp is a favorite among half a dozen banks in the regional South East banks, that have solid management. Volume is above average, RSI is rising from below 50 and MACD is crossing back above the zero line. Note Bollinger bands are expanding. Earnings are scheduled for 10/19/16, before the open.


WAL is an IBD50 candidate. The stock is only 0.60 above its ascending triangle breakout zone. Stops just below this area. The company is expected* to report earnings on 10/24/2016 before market open.


OZRK is a regional bank showing RSI rising, MACD crossing and stochastic pointing to higher prices on aboe average volume. A flag at the 200ma would be an excellent buy point.

Another occasional IBD50 candidate, Bank of the Ozarks is expected* to report earnings on 10/11/2016 before market open.


Look at most of the banks and you’ll see the same pattern. Check the components of KRE for good setups, like the 10e/STO/MACD. Remember to check earnings dates and make use of a stop just inside a recognizable pattern.


Good luck today and ………

Happy Trading


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