The regional banks are down around 10% while the S&P is down around 3%. Quite a difference, but such divergence can create opportunities. A well capitalized bank that showed profits every quarter in the bank meltdown 2008-2010 is BBT. It is down from a peak around $29.50 to around $27.02. I believe BB&T is setting a trading bottom.
They have indicated they are in the market to do a $3b or so deal for a bank (seem to be targeting the Midwest currently). They just sold $1b in bonds (a warchest?). I will have a limit order in for this bank somewhere around $26.75-26.85 to take a small position (as a trade).
Here is the chart:
GL traders. Do your own analysis and use stops.
Close, but missed my limit order on the open. So I wait for the next bus to come along.
ReplyDeleteIt's not done going down. It's doing a nice 10/30DMA downward cross...bottom line trend indicates below 25. But at least to 25.58
ReplyDeleteThanks Shadow for your comments. You well could be right - I was looking for short term trade not a marriage. I show financials not bottoming (long term bottom) for some months. See my post on sectors.
ReplyDelete3-4 BBT taking a hit. Bottom of channel past few days is aroud $26.40. I am putting in a limit order @ $26.42 (if bought I will put a stop loss @ $26.25). This is strictly a short term play for a 50 cents or so bounce.
ReplyDelete3-4 Well that didn't work out did it. Got on the bus and then got thrown off. I need a friendlier bus or different strategy. Buy and sell calls I thin is in order.
ReplyDelete3-10 I did get back on the BBT bus late last week and got my revenge (a nice trading profit) for getting thrown off. lol
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