I hope you noticed that the Daily Notes segment had a lot to say yesterday. I feel both liberated from inflicting my noisy trading (or quiet lack thereof) on you and liberated to talk more about trade setups. I almost put this update in the Notes, and some such situations will appear there on occasion.
But for now let’s call this an NFTRH+ update on a short setup developing in the Banking ETF, KBE.
KBE has eased below important support at 53 (+/-), including its uptrending 200 day moving avearge. Anything above those levels can be used as a “stop loss” for any short position taken. Similarly, that level can be used to activate a short position, should KBE bounce up there.
A reasonable downside target is shown as support in the 45 to 47 area.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
Hi Gary. Do you have a preferred way for shorting the banking sector within an IRA?
Maybe Proshares or Direxion or one of those type fund companies have an option. Probably “short financials” in general. I took a shot and shorted KBE directly.
I decided to cover and take a small profit and see if we get a market bounce and a bounce in KBE per the spec noted above.