KRE - Regional Banks NQBANK XLFOh my, death on a stick once again.
Banks are twisting in the wind.
Health?
Hell No.
______________________________
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.
KRE trade ideas
6/1/22 KRESPDR S&P Regional Banking ETF ( AMEX:KRE )
Sector: Miscellaneous (Investment Trusts/Mutual Funds)
Market Capitalization: $--
Current Price: $63.44
Breakout price: $66.00
Buy Zone (Top/Bottom Range): $62.20-$56.55
Price Target: $90.00-$91.00
Estimated Duration to Target: 496-509d
Contract of Interest: $ZM 6/16/23 70
Trade price as of publish date: $4.70/contract
Opening: KRE April 14th 60/79 Short Strangle... 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 Breakout - Target 81.33 , 86.74 , 94KRE 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 bullish breakout with volume ahead of bank earnings. 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.
$KRE Weekly Box BreakoutAs 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 69p (.28 delta)
KRE call credit spread Apr 16 expiryKRE 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 the distal edge of supply with a liquidity search rally spike just below it
Opened as 4 DTE, 19% ROI
Got the decline this morning and trade looks good for Fri expiration Apr 16
The Stars Align | Long Financials1. 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 buying back shares after June 30
Found support at the 50day (orange)
Stoch RSI, Buy signal
OPENING (IRA): KRE MARCH 19TH 42 SHORT PUT... 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 covered call profitably. ROC: 2.64% at max as a function of notional risk; 9.6% annualized at max.
OPENING (IRA): KRE JANUARY 15TH 40 SHORT PUT... for an .81/contract credit.
Notes: With 30-day at 57.4% and expiry-specific at 42.3%, selling premium in one of the underlyings on my IRA shopping list. (Current yield 3.02%). I would ordinarily just ladder out, but this isn't exactly weak relative to where it's been, so want to keep powder dry for it in the event it weakens further. 2.07% ROC at max as a functional of notional risk; 11.6% annualized.
Regional Banks On the Move!Regional banks have been an absolute dog as of late. They lag almost everything, other than energy. This sector has shown some strength since the “Tech Wreck”. So why do we focus on this group? Well it is part of a larger story…. interest rates. Let’s hop on the chart.
So here we have the charts of KRE. We have seen a downward sloping trendline that was intact for months break. Now we are going to test an area of overhead supply. If we break through at that area, that is bullish for stocks. If we break down at that level, we would be looking for a higher low to confirm the trend reversal. We are also seeing the RSI break through some overhead resistance which is bullish. We want to see participation from financials, even the small ones! Now this is also part of a larger story of interest rates. If KRE is rising, we can assume rates will rise as well. At least in the short term during reversals, these two trend together. We are seeing utilities break out too, which is another leading indicator of rates increasing.
Happy Trading!