The Regional Banking ETF (KRE) has made two consecutive closes over its 50-Day moving average confirming a bullish phase change.
KRE is also the only ETF in Mish’s Economic Modern Family that is holding a bullish phase on a daily chart.
Therefore, we should keep an eye on KRE along with its holdings for trade ideas given its outperformance compared to the other key ETFs.
Although KRE has confirmed a phase change, we should be careful when timing trades since the major indices are re-entering a choppy price area.
With the current volatility, it would not be surprising to see KRE break back under its 50-day moving average at $73.17 if the market begins to stall at its current price levels.
That is why trade entries are so important.
Simply buying an outperforming stock/ETF doesn’t mean you will make money from a trade.
Waiting for the right entry point makes all the difference.
Currently, KRE is sitting at a pivotal price level as seen by the black line in the above chart.
$74 is where KRE needs to hold while, $76, and $78.80 are upcoming resistance levels.
With that said, we can look for entry points into KRE over these levels, however, we can also search through KREs top holdings to look for potential big performers.
One of which is Silvergate Capital Corp (SI).
A potential bonus to SI is its ability to provide banking for cryptocurrencies along with regular banking services.
Because Bitcoin on Monday cleared back over 41k this could help give SI an extra boost in price going forward.
Currently, SI is lingering under its 200-DMA at $129.35.
Ideally, SI will need to clear $131 and hold this price level to completely break out towards the upside.
Stock Market ETFs Trading Analysis & Summary:
S&P 500 (SPY) Holding over the 10-day moving average at 435.72
Russell 2000 (IWM) 208 resistance.
Dow Jones Industrials (DIA) 341 the 10-day moving average.
Nasdaq (QQQ) 344 pivotal.
KRE (Regional Banks) Needs to hold over 74
SMH (Semiconductors) 272 to clear.
IYT (Transportation) needs to clear 200-day moving average at 262.02
IBB (Biotechnology) Flirting with the 10-day moving average at 126.12
XRT (Retail) 75.67 to hold.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
