Bank stocks have been some the strongest performers in this post-election rally. But, they have run too far too fast and they are now heading into earnings season with sky-high expectations and not much other that hot-air to prop them up.
My models point to a stock market correction dead ahead, and financial stocks are one of the most vulnerable sectors right now. Earnings reports could be just the downside catalyst needed to send bank shares crashing back down to earth.
Yesterday, I showed you my AI chart of the Dow Jones Industrial Average indicating that we should be right on the cusp of this decline. I suspect the financial sector is likely to lead the selloff and the breakdown could happen any day now.
So I believe this is an excellent entry point to short financial stocks. Specifically, I recommend buying the Direxion Daily Financial Bear 3X ETF, symbol FAZ, to profit from Bank shares moving lower. This ETF is designed to hand you $3 in gains for every $1 drop in financial stocks; an excellent way to profit from the decline.
Now, here’s what I recommend:
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For ALL Members: Using 5% of the funds you have allocated to this trading service, buy Direxion Daily Financial Bear 3X ETF, symbol FAZ, at the market. Place a good-till-canceled protective sell stop at $18.89. |
Go ahead and get this order in ASAP, hold all other positions and stay tuned.
Best wishes,
Larry
