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Moby Waller
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Moby Waller is a former CBOE Market Maker floor trader and off the floor London-based European Index Options Trader. He is co-Portfolio Manager of the ETFTRADR http://www.bigtrends.com/etftradr-advisory-service/ & Rapid Options Income ROI... More
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BigTrends
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BigTrends Blog
  • Banks Are Showing Signs of Life 0 comments
    Jan 5, 2010 6:32 PM | about stocks: XLF, KBE, RKH
    The Banking sector, which has been lagging for months now (I've previously commented on its underperforming range) has shown some interesting signs of strength thus far in 2010.  Take a look at the chart of the PHLX Bank Index (BKX) (NYSEARCA:KBE) (NYSEARCA:RKH) (NYSEARCA:XLF) below:

    BKX Daily Chart


    You can see that the recent move higher has sprung Percent R and Efficiency Ratio to levels not seen in some time.  Additionally, the slope of their upward spikes is impressive.

    Bank sector should be considered for a momentum upside play ... longer-term fundamentals remain iffy, in my view.  Additionally, keep in mind that Percent R has not yet broken 80 on the BKX Daily Chart, which is a key bullish threshhold in our analysis.  Also, we are right at the Top Acceleration Band (purple lines), which is also a key technical area.

    Moby Waller,
    BigTrends.com
    1-800-244-8736



    Disclosure: No positions.
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