Watch List for the Week
We are watching financials that benefited from sector rotation and capital flow last week. Banks, broker-dealers, investment services, payment processors and asset managers all exhibited relative strength, boosting interest in financials last week.
Financials – Investment Services
Ameritrade, E-Trade, Interactive Brokers, and Schwab round out the Investment Services industry group candidates we are watching. All of these stocks will most likely continue higher over the coming weeks. Targets are recent 52-week highs.
Schwab (SCHW) with targets indicated. Volume suggests continuation. RSI and MACD are bullish, with the latter above its signal line.
Bollinger Bands are expanding top and bottom suggesting a fast move.
Sidenote: The indices need to break out on surging volume to confirm institutions are showing conviction. Until that time we should proceed with caution. We are taking smaller positions are taking smaller positions at this time.
For example, we would normally take 250 shares upon entry in a bullish market. We are currently taking only 125 shares on a case by case basis.
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