Chris Shenfield

8 Charts for Trading Financials

Correction: I meant never sell a WINNING stock.


On May 10 11:51 PM Squares7 wrote:

> I agree with Marco that there could be a lot more upside to financials,
> including these banks charted. There seems to be a lot of skepticism
> and criticism, bordering on anger, among the commentators, mostly
> centered on general distrust of the bank's financial statements and
> disagreement with the government's role in propping up these institutions.
> My response is that after years of successful investing, I've learned
> one thing--don't fight the tape. There is a huge amount of momentum
> here. Failure to break UPSIDE resistance doesn't indicate anything
> more than a pause. It's only breaking resistance on the downside
> that would indicate reversal. I have ridden Citigroup from $1.25
> and Bank of America from $5 up to their present prices, and its been
> a great ride because I've learned to never sell a losing stock. Just
> raise your trailing stop losses and enjoy the momentum while it lasts.
> It could continue for quite awhile.

8 Charts for Trading Financials

I agree with Marco that there could be a lot more upside to financials, including these banks charted. There seems to be a lot of skepticism and criticism, bordering on anger, among the commentators, mostly centered on general distrust of the bank's financial statements and disagreement with the government's role in propping up these institutions. My response is that after years of successful investing, I've learned one thing--don't fight the tape. There is a huge amount of momentum here. Failure to break UPSIDE resistance doesn't indicate anything more than a pause. It's only breaking resistance on the downside that would indicate reversal. I have ridden Citigroup from $1.25 and Bank of America from $5 up to their present prices, and its been a great ride because I've learned to never sell a losing stock. Just raise your trailing stop losses and enjoy the momentum while it lasts. It could continue for quite awhile.


On May 10 11:29 PM Marco Hickey wrote:

> Alan you're right I failed to draw in the support lines, but I clearly
> stated that they need to break above with the help of the market,
> and nobody knows what could happen in the next days to come. I never
> intended the charts to be bullish, nor am I bullish as stated I am
> taking profits (sold nearly 60% of my financial positions Friday).
> I agree with twotraps, it's a momentum game now and until these stocks
> indicate the trend is down, I'll hold onto some of my position in
> financials.
>
> And to answer moron's question about taking the stress test results
> at face value... No, I simply stated what the Fed is "expecting".
> I certainly have no idea of what these banks will lose as most of
> the banks don't even know what to expect! The rally could continue
> IMO based on: how much money is on the side lines, and the fact there
> is absolutely no clarity.
>
> And, yea I certainly bought what AIG said, that's how I've paid off
> my car loans, and 100% of my college bills with the money I made
> in September and October buying PUTS on all the major banks...<br/>
>
> Simply a momentum game for now... I'll be buying more put protection
> when the momentum changes.. But in the last 8 weeks, being a bear
> wouldn't have worked too well.
>
> On May 10 08:32 PM Alan Young wrote: