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

Money flow continues to find its way into bank stocks, as pre-market price action suggests more upside. The KBE has changed trend, with price above the rising 9/20ema, suggesting the current pattern will lead to higher prices. Financials are higher pre-market.

Most of the Top 25 stocks in the SPDR Bank ETF (KBE) are starting to break out. As money flows out of growth, we have been adding exposure to the leaders in this industry group, with the top 3 added to our portfolio in the last few days. We started Morgan Stanley last week, then added Bank of America and Citigroup this week. These three are ranked by Investors Business Daily in respective order, with Morgan Stanley topping the list.

We will likely add to these positions as trends change. Confirmation will come as bulls follow through and more investors seize the opportunity.


While bank stocks are favored, additional winning stock picks in the insurance, asset management, investment services and real estate industry groups are seeing their share of money flow. Look to these areas over the next few days for setups. Many financial stocks are printing bullish patterns, but have failed to break out to date. That will likely change, as most of them exhibit a change in momentum.

Happy Trading,


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