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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Market Notes: Money In The Banks -- June 27 1 comment
    Jun 27, 2013 5:12 PM | about stocks: KRE, ZION, SIVB, WBS, FMER, RF, SUSQ

    The bulls continue to battle back as buying pressure pushed the Dow Industrials (DJIA) and the Russell 2000 (RUT) back over recent support levels (15000 on the Dow and 3400 on the Russell). Unfortunately, the S&P 500 (SPX) and the Dow Transports (DTX) weren't able to follow suit--maybe tomorrow? Although a falling VIX is bullish, it's still in the bull/bear demilitarized zone between 15 and 20. What this all means is that despite the recent three day rally, the market isn't under anyone's control at the moment with the only real bright spots being the regional banks, select media issues (TWC, CHTR, TVL, DWA), and healthcare providers. Late-day selling pressure intensified indicating that the bears might be positioning themselves in anticipation of a lower open tomorrow. We'll find out soon enough which side will be taking charge.

    Today's Market Highlights: Put your money in the banks!
    I've been writing for a while on the rally in regional banks pointing out individual issues worthy of note. I still think that this is one of the few industry groups that stand to benefit from the Fed's projected easing out of quantitative easing and longer-term investors should seriously considering parking some capital in this area. However, if you don't have the time or don't want the hassle of selecting your own stocks, then I suggest the regional bank etf (KRE, $34) which is a basket of regional banks. Among its top ten holdings are Zions bancorp (ZION, $29), SVB Financial (SIVB, $83), M & T bank (MTB, $111), Webster Financial (WBS, $26), First Merit (FMER, $20), and Susquehanna (SUSQ, $13). The stock in all of these banks having been doing very well with many of them recently breaking out to new highs. The KRE pays a 1.7% dividend, not as good as many of its constituent members but it sure beats a money market. Options players may wish to enter a position using a cash-secured put and covered call writers will like the liquid options field.

    Subscriber Notes: There is one new Stock Darling.

    Themes: regional banks, long ideas Stocks: KRE, ZION, SIVB, WBS, FMER, RF, SUSQ
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  • realornot
    , contributor
    Comments (1281) | Send Message
     
    We are reading the same tea leaves.

     

    They are launching on the water bulls.

     

    http://bit.ly/14JESi9
    1 Jul 2013, 09:16 PM Reply Like
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  • Intraday support/resistance: $SPX 1882.5/1902.5, $DTX 812/821, $DJIA 16260/16420, Nasdaq 4248/4312, $RUT 1078.5/1096.5; $VIX 18.85/22.15
    about 18 hours ago
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