Wither the Banking Sector... by design.
All part of the Plan.
Larger Regional Banks will become the very next too-big-to-fail entities.
A good old-fashioned rollup, kinda like Bush Sr's criminal S&L Scandal Part tres.
Bank on it.
A threat to financial stability?
M&A isn't going to go all...
Oh my, death on a stick once again.
Banks are twisting in the wind.
Use the Dollar Tool now.
Forget Stonks they are cooked.
Markets go nowhere without Financials.
Homies' wreckage just beginning.
Bonds are already in ruin.
Crypto, ready for the beating.
Gold, a shiny useless rock.
22% more to go... adios.
... for a 1.76 credit.
Comments: Popped to the top of my screener with an IVR of 95 and a 30-day of 45.1. Selling the 16 delta strikes for a 1.76 credit on buying power of 7.06; 24.9% ROC at max; 12.5% ROC at 50% max. Will look to take profit at 50% max, roll sides on approaching worthless/side test.
KRE has been consolidating in a channel for more than a year. Recently it gave a breakout from the channel and trying to retrace back to the trend line for breakout confirmation. With Fed planning to raise interest rates 3-4 times in 2022, all banking sector has gained momentum. Breakout moves could be explosive on the upside, targets 81.33 , 86.74 , 94 and beyond.
KRE Weekly chart showing bullish break out to ATH with increasing volume.
Technical point to a more bullish move for up coming weeks ahead of bank earnings.
CCI & RSI trending higher and moving up to bullish signal.
Cross on weekly Stochastics RSI is showing a bullish cross.
A Wolfe Wave is a chart pattern composed of five wave patterns in price that imply an underlying equilibrium price. Investors who use this system time their trades based upon the resistance and support lines indicated by the pattern.
As mentioned in XLF idea, Financial charts looking bullish with a nice weekly box breakout. KRE regional banking etf :
- Look for retest of box or possible sellers to step in for a push down to 8EMA green line
- My bias and bull case - continuation , especially with the MACD bullish cross confluence.
I'm long Dec 72c but can also form a spread with the Dec...
Financial sector looks pretty good, showing relative strength, despite choppy market. Nice wedge breakout on heavy volume, with excellent mirror support level retest. We are looking for 71.30 level breakout. SL 67.80
KRE call credit spread - back logging entry, not at expiry yet
At likely channel high resistance
Driving in hard rally
The center line is well respected
Likely a -2 to +2 sigma move and then roll over
Danger is rally expansion after a consolidation so need short strike to be as high as possible
Aggressive sellers above in DBD supply zone
Short strike at 70 is at...
1. Steepening Yield Curve
2. High GDP Growth, which will boost loan growth
3. Lower credit losses supported by fiscal stimulus
4. Accelerating job growth, which should drive up consumer spending, improve credit outlooks further & enable accelerated reserve releases
5. Accelerating buy backs
*Fed to end its temporary restrictions on most banks paying dividends and...
... for a 1.08/contract credit.
Notes: I already have some January on, and there is no February currently, so going out to March with 30-day still >35% at 36.5% and expiry specific at 38.4%. As with my other IRA short put trades, I'm fine with getting assigned, selling call against, particularly since it has a small dividend to pay you while you wait to exit any...