As you know, the financial sector has been a tough trade for some time. Most have trended down significantly since September with only a few exceptions. The volatility and constant news, however, make banks interesting for short term trades. At this point, I’m not willing to buy and hold the likes of C, GS, WFC, or even the smaller regional banks. However, I am interested in swings and scalps in this sector – in particular, regional banks.
If you trade these sub-$10 regional bank stocks, you must be careful and stay close to your trades. It has been some time since I’ve actually held one overnight – most of my trades here are short term scalps.
I did some scans this morning and noticed a somewhat bullish Friday in a lot of oversold bank stocks.. AND many had respectable volume. This may be setting up for some trade opportunities Monday morning if the market, does in fact, continue the swing back up. Here are a few high volume regionals I’ll have an eye on for possible scalps this week.
CPF – Notice it tested MA50 on Friday and failed. I’m looking for a move through on Monday for possible move to 1.40 resistance, then MA200. Again, I’m not interested until it gets through MA50.
TSFG – Very risky… tread lightly. I do like that Full Sto and MACD appear to be bottoming and turning back up. Would like to see more volume, but this one has a chance to pop rather quickly intraday and it has a lot of open air above it up to .54 if it can get through .42.
NPBC – Very bullish Friday. Bounced off SMA200 and moved through both MA50 and MA20. Currently testing horizontal resistance, but a move through 6.18 could open the doors. 6.50 next resistance. If I wanted to swing a bank tomorrow, I might consider this guy above MA20 with a stop just below.. then trailing stop if it holds. We’ll see how the sector performs before taking a position, however.
CRBC – I apologize for the messy chart. Basically trying to show that CRBC bounced off support on Friday and managed to finish on MA50 and through MA100. Nice turning Full Sto and MACD. I’m interested in possible long position above .725.
MI held MA50.. worth watching.
FNB – last trade, MA50, MA100, MA200 are all sitting on top of each other. Would be interested in possible swing if it moves above 7.
FBP – Would like to see it move above 2.02 before taking a shot at this one.. a move over 2.10 would be even safer. This is one I don’t like to hold overnight. The direction is just too hard for me to figure out. I like scalping FBP on sector moves.