The financial sector has appreciated handsomely, post election. Most, but not all banks are overbought and on unsustainable trajectories or so we thought. Insert a grin here. We ran a scan last night specifically looking for financial sector candidates that have yet to break out. What we found follows in this brief summary of respectable and noteworthy.
Stock Yards Bancorp, Inc. reported a4.55% beat on October 26th. SYBT will not report again until January 25th. We note a breakout of the recent price consolidation. It trades thin volume, while RSI and 9/20ema slope suggest we could see higher prices in the short term. This is one we will watch today for a possible scalp.
Insurance companies are part of the financial sector as well. There were a few candidates in this industry group worth contemplating. If FNHC moves above the 19.00 level, the Kirby opens up, with little overhead supply to impede appreciation in the shares. We’d view this is a long swing, days or weeks, with back and fill along the path to 22.66 (+/-). EPS 11/02/16 (miss).
In addition to banks, we were looking for asset managers, investment services and broker dealer candidates that exhibit noteworthy set ups. BGCP met earnings in its recent quarterly update. The stock looks poised to continue higher, as volume suggests institutions are still picking up shares on this investment services company. We’d view this as a scalp or short term swing.
BGCP weekly shows the two year consolidation that caught our attention. We would imagine that the shares will continue higher before building its next base. RSI is pointing higher, along with the 9/20ema and MACD. As a side note, always run a IBD “stock checkup” if you are a member, to find out what other competitors look like compared to BGC Partners. You might find a winner.
INTL is also on our radar. RSI is embedded signifying strength, which MACD and SOTEMA remain bullish.
VIRT is breaking a downtrend. We are looking for a quick run to the descending 200ma at 19.00, as volume shows institutions are busy accumulating shares. SOTEMA is bullish, while MACD recently pierced the zero line, trending positive for the past sic weeks as the stock bottomed.
We typically don’t initiate new positions on Friday unless we see something compelling. In addition, members have been sharing exceptional setups in the trading room, should you absolutely “need” to trade today. We have several positions that will need maintenance today, as nearly all watch list candidates from the past two weeks remain appreciably higher.
A special welcome to all of the new members and Canadian subscribers. Say hello, as there are quite a few of you in the room.
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