DPST a triple leveraged bullish ETF for Regional Banks LONG
Updated
While tracking regional banks DPSt had a bad time in the spring with the
small and regional bank failures/rescues and the federal actions to buttress the faith of
citizens in them. There has been no runs on the banks. Larger banks may be taken
some business from small banks sattled with securities with diminished
value due to rising interest rates and the effect on the face value of those
fixed-rate securities. No matter, things are better now. This is not to say
the whole banking sector stress is resolved. Banks have enjoyed great
returns on credit cards. The 15-minute chart here shows a good overall
uptrend within ascending parallel support and resistance trendlines.
Price is presently at the bottom of that parallel channel. The relative
trend index signal is near zero meaning at least in this instance trend
is fairly quiet with low volatility. Relative strength lines have bounced
up from the lows of about 20 and now are in the 40-50 range.
Overall, I see this as a good entry point for a long-swing trade targeting
the top of the channel which I estimate will be about 100 buy the
end of next week estimating the trade duration to be 5 trading days.
My reasonable opinion is that next week's volatility will be far less than
this past week and that DPST will do well. I will also take a look at
the KRE and KBE ETFs. I like this as a long setup with a 15% potential
for a ver low risk in a stop loss set $.50 below the channel.
small and regional bank failures/rescues and the federal actions to buttress the faith of
citizens in them. There has been no runs on the banks. Larger banks may be taken
some business from small banks sattled with securities with diminished
value due to rising interest rates and the effect on the face value of those
fixed-rate securities. No matter, things are better now. This is not to say
the whole banking sector stress is resolved. Banks have enjoyed great
returns on credit cards. The 15-minute chart here shows a good overall
uptrend within ascending parallel support and resistance trendlines.
Price is presently at the bottom of that parallel channel. The relative
trend index signal is near zero meaning at least in this instance trend
is fairly quiet with low volatility. Relative strength lines have bounced
up from the lows of about 20 and now are in the 40-50 range.
Overall, I see this as a good entry point for a long-swing trade targeting
the top of the channel which I estimate will be about 100 buy the
end of next week estimating the trade duration to be 5 trading days.
My reasonable opinion is that next week's volatility will be far less than
this past week and that DPST will do well. I will also take a look at
the KRE and KBE ETFs. I like this as a long setup with a 15% potential
for a ver low risk in a stop loss set $.50 below the channel.
Trade active
Inch by inch dollar by dollar. Stop loss raised to above break even. Carrying full position into next week which likely will be more mellow and relaxing one thanthe one just finished. The banking sector is good JPM and GS have been great trades.
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