Here’s your trade on the investment bank stocks. Check out StoneX ($SNEX) and Interactive Brokers ($IBKR) – January 13, 2025
Dan Fitzpatrick here at StockMarketMentor.com. I want to look, not at just Stonex ( NASDAQ: SNEX ) here, but a couple of the other investment banks in this same industry group.
I just saw this one ( NASDAQ: SNEX ) on IBD Live this morning. I really, really like the way it looks. It’s not the best but that’s why I’m starting off with this. We got a big pullback here, a big, big, big massive dip below the 50-day moving average. That’s it, that’s the end of the story, a busted stock, time to take your chips and go home.
Then we get a rebound here on the very next day. Heavier than average volume, this is still a fairly thinly traded stock here. The average volume is less than 200 shares a day. And then the following day we get this massive move higher. This is institutional buying. When you look at this in the big picture, this isn’t necessarily institutional selling.
It’s a low-volume deal here, 66,000, 67,000 shares traded, but here, when you get this kind of move you’ve got three-quarters of a million shares traded. This is a big deal, it gives you the sense that there’s some institutional buying here and this is one that you want to be long. It just needs to rebound above the 50-day moving average, and that’s what it did back on Christmas.
Now we get a move higher, and not a new high here. It didn’t get a new high, it actually printed a lower high, and here we are back at the 50-day moving average. So as I look at this, I’m looking at the weekly chart, this looks like a garden variety consolidation here between 95.00 and we’ll say 105.00, something like that. So if you’re a breakout buyer you want to wait for it to break out above 105.00.
My feeling is that you could go back to the daily chart and craft a lower-risk entry right here. Taking advantage of the fact that this was a much lower low, below the 50-day moving average, than this one was, this came down less than 2 percent. This one fell below the 50-day moving average, by almost 5 percent.
So this is a higher low, not just nominally meaning pricewise, but also relative to the 50-day moving average. So this is a really good reference for your stop here. You can buy this stock here and put your stop right down here, so you’re really not risking much money at all in order to take a shot at getting this kind of move.
The most important thing on something like this is knowing where your, oh crap, I’m wrong level is. Here, it would be below today’s intraday low, that’s Stonex ( NASDAQ: SNEX ).
If I look at Interactive Brokers ( NASDAQ: IBKR ) there are some similarities there. But the one difference is, at least I look at this as more of a solid base, a breakout higher, it did print close to a new high. It’s basically a double top here, I guess you could say. And then a pullback to the 50-day moving average.
What we need to see here is, we need to see this stock rebound off of this level, and so you can literally do the same thing. You can put your stop right about here, a tight stop, don’t ride stuff down. I’ve done that before and it never works out, and then ride this thing on the victory here.
Then what was it I wanted to show you, was it Jefferies ( NYSE: JEF )? I had a few of them here, Jefferies ( NYSE: JEF ) is busted, don’t even go there. It’s not a buy for you. Oppenheimer ( NYSE: OPY ), this might work except for this, they haven’t even traded 10,000 shares today.
The bottom line is this, stick with iBroker ( NASDAQ: IBKR ) and Stonex ( NASDAQ: SNEX ) and you’re going to do just fine on this. A random one, we’ve had this on our Active Trade List from lower levels is Robinhood ( NASDAQ: HOOD ). This is one that you can wait on and watch to see how it performs.
So again, Stonex ( NASDAQ: SNEX ), I think it’s up even since I started doing this video. iBroker ( NASDAQ: IBKR ), that’s it, that’s your call. Pick up one of those things, set your stop, and my bet is you’re going to make money.
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