Here’s your trade on the Regional Banking ETF ($KRE) – March 24, 2023


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This is going to be such a pivotal weekend with a meeting on how to fix what is broken (financially), so you don’t want to be short going into Monday.

If we look at the banking index ( NYSEARCA: KRE ) you can see that this thing, this morning, gapped down and then virtually immediately turned around and started trading up. And so this is the market saying, we think this is going to be contained.

Now, don’t get too lathered up about it because the market has thought that before, several times and it is not contained. This was a pretty good move, though, on twice the average volume. If you look at the weekly chart you can see kind of more stabilization.

This is well outside the Bollinger Band complex, which is not supposed to happen too much. And if you look at this in 3 standard deviations, this almost breaks the law of statistics when this trades that far out of the typical Bollinger Band complex, and you can certainly see how it is here.

My suggestion would be, to watch this on Monday, as far as, just for a trade. If it runs up above 44.00, I wouldn’t be holding this overnight, but if it runs up over 44.00, see if you can get a few percent out of it. If you get 3 or even 4 percent, that would be awesome in this kind of market.

If you look, though, at stuff like Regions Financial ( NYSE: RF ), this is giving a better technical picture. And so, it is something that you want to watch. Check this out, and see if it works.

Then stuff like Wingstop ( NASDAQ: WING ); this is another stock that I am looking at. I am not trading it, I don’t own it, and I want to wait for a better setup. But there is stuff like this that I really think gives us some opportunities going into next week. But for now, for the most part, I am just standing pat and we will see what happens.

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