KBW Regional Bank ETF Making a Double Bottom?

Mar.26.08 | About: SPDR S&P (KRE)

KBW Regional Bank ETF (NYSEARCA:KRE), an exchange-traded fund that holds 50 regional bank stocks, on January 18, 2008 closed at $ 31.82, an all-time low. After a brief sharp move to the upside, it successfully tested the low on March 6 and bounced back to the upside. The current chart pattern looks like a classic double bottom, a bullish pattern. Whether KRE continues to the upside depends, in large part, to the overall direction of the broad market.

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Meanwhile, KRE offers a dividend yield above six percent, which gives investors a cushion during the current uncertainty.

The fund's top five holdings by market capitalization are: Hudson City Bancorp (NASDAQ:HCBK), UnionBanCal (UB), Sovereign Bancorp (SOV) Synovu Financial (NYSE:SNV) and Associated Banc-Corp (ASBC).

The top five holdings by fund weight are Westamerica Bancorporation (NASDAQ:WABC), Commerce Bancshares(NASDAQ:CBSH), Bank Hawaii (NYSE:BOH), BancorpSouth (NYSE:BXS) and First Commonwealth Financial (NYSE:FCF).

Disclosure: I do not own KRE, but I plan to buy it on price dips.