With interest rates bouncing across the curve (beyond the Fed-controlled T Bill yield) per the projection of a previous NFTRH+ update (with a lag), I took a look at the logical beneficiary of rising yields, the Bank sector.
If we assume that this bullish looking pattern in the 10 year yield is as bullish as it looks, then the banks could benefit.
The KBE Banking ETF is bumping above the SMA 200 for the second time. MACD is triggered and RSI is tickling 50+.
If yields continue firm (with a caveat being that Treasury yield engineers will render a decision on Thursday) I don’t see why KBE cannot get up to 35.50 and fill the gap.
Buy Target: 34 or thereabouts
Sell Target: 35 to 36 (a leveraged ETF based on the Bank sector would provide more oomph to this modest trade)
Stop Loss: Below 33.30 or to suit risk tolerance below 34
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst.