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KRE Swing Trade Entry

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KRE Swing Trade Entry

KRE (regional bank sector ETF) will be added as an Active Long Swing Trade around current levels. The price targets are T1 at 49.29 & T2 at 51.07 with a suggested stop on any move below 44.79 & a beta-adjusted position size of 1.0.

As with yesterday's long entries on IWM & QQQ, this should be considered an aggressive, counter-trend trade & as such, one should pass if that does not mesh with their trading style, risk tolerance or outlook on the market/sector. An alternative, higher probability entry could be taken on a breakout above the 60-minute downtrend line, albeit at a potentially less favorable entry price. The previous notes as well as the long-term weekly chart on the KRE trade idea can be view by clicking here or on the KRE symbol tag located below this post (next to the date & category).

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2018-12-21T10:18:07+00:00Dec 21, 2018 10:18am|Categories: Completed Trades - Long|Tags: |2 Comments

2 Comments

  1. evyAL1972 December 21, 2018 11:55 am at 11:55 am

    Good morning , Randy . What kind of exposure does KRE have to the frackers ?
    Tried posting this earlier , but didn’t post .
    Thank you

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    • rsotc December 24, 2018 12:39 pm at 12:39 pm

      Reposting my reply that I made last week to this same question of yours in the trading in case anyone comes across it here & is interested:

      That’s a good question & I did think about it last night which I was going through the charts. I put down several dozen long candidates & many of those were individual regional bank stocks. In fact, so many & the charts looked nearly identical on all that I figured they were all falling in sync to do forced selling from withdrawals out of KRE & IAT.
      I considered going with some of the individual regional banks but as the charts were so similar & it is much easier & less risky) to manage a trade on a sector ETF vs. several individual bank stocks, I went with KRE.
      I thought about the exposure to frackers as that is likely a big drag on the banks that have loans out to them but I image it would take a lot of work to figure out which banks have & to what extent for each one.
      I think it might be safe to assume that the regional banks with a significant footprint in the regions that have fracking are the ones with exposure but A) how much of that has already been priced in with the near vertical plunge and B) the good banks have likely been sold down with the bad & once the bounce comes, the bad will likely rally with the good.. hence the benefit of the ETF.

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