The Banking Sector

I am going to follow the Banking sector through it's current phase as my most likely future bull ETF trade opportunity. Due to the ongoing banking crisis I am not sure that it will give what I want in the short term but I like that the BPI chart regularly hits the 10% mark which makes that particular indicator a no brainer trade.

In the past year and change it has hit 10% four times and had decent rallies. Even though most are still way down many ETFs have returned 100% from their respective low points. They are still relatively inexpensive which makes them a decent stock style trade instead of options if they are not all optionable... which I am finding the case with many ETFs. I hesitate to start drilling down to the stock level to find underlying securities to trade options on...but I will go there after getting comfortable with this style of trading.

I cannot find a decent BPI for this sector directly so I thought maybe I could substitute the financial sector on stockcharts.com. No luck, that BPI is in the high 60%'s and I will likely watch it as a good short candidate if it peaks above 70% one more time and it likes to hit sub 10% as it has six times in two years.

Tomorrow I will setup my performance comparisons for a few indices that look ripe for either a bear or bull trade.

I cannot easily setup and post charts for the P&F from stockcharts.com and I will not post stuff from Investors Intelligence as it appears to be proprietary indices. The charts that I have been posting in the past have all had information on them that is non-proprietary and not real time so I have never had an issue in the past. Of course I wouldn't really expect anyone to see and have an issue with anything here I still like to keep away from any chance of some sort of infringement.

I suppose I could just keep everything simple for myself and use the S&P500 indices and BPIs as they are mostly available through stockcharts. That and ten main sectors is easier to manage than 46.

Jeff.