{"id":22376,"date":"2024-12-20T07:30:52","date_gmt":"2024-12-20T12:30:52","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=22376"},"modified":"2025-01-23T15:47:58","modified_gmt":"2025-01-23T15:47:58","slug":"take-your-profits-on-the-bank-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/take-your-profits-on-the-bank-sector\/","title":{"rendered":"Take Your Profits on the Bank Sector\u2026"},"content":{"rendered":"

It took a cluster of five sell signals, but the warnings from the financial sector bullish percent index (BPFINA) finally paid off.<\/p>\n

The KBW Bank Index (BKX) is trading 10% lower today than where it was earlier this month when we said it was time to “bet against the banks<\/a>.”<\/p>\n

Back then, we argued that clusters of sell signals in the BPFINA often preceded pullbacks in BKX.<\/p>\n

Indeed, the four previous times we faced this condition this year the Bank Index sold off until it was trading just slightly below its 50-day moving average. So, we suggested it was vulnerable to at least a 10% decline.<\/p>\n

Here’s the updated chart of BKX…<\/p>\n

\"chart\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

BKX closed Wednesday slightly below its 50-day MA, and down just over 10% from its late-November high. This move is consistent with previous BPFINA cluster sell signals.<\/p>\n

In the process, the bullish percent index for the financial sector has declined from an extremely overbought condition. It is now in neutral territory.<\/p>\n

Take Your Win<\/h2>\n

Here’s an updated look at BPFINA…<\/p>\n

\"chart\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

At 56.94, the BPFINA is near its lowest level of the year. It’s not yet oversold. It will take a decline below 30 to create that condition. But, it’s nowhere near as overbought as it was two weeks ago.<\/p>\n

The “easy money” trade of betting against the banks earlier this month is over. Profiting from a further decline is going to be more difficult.<\/p>\n

So, if you bet against the banks based on my advice two weeks ago, then it’s time to book your profits.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

I’m not suggesting you reverse the trade and go long the banks right now. We’ll need to see oversold conditions before I’d make that recommendation.<\/p>\n

But, with the BPFINA trading near its lowest level of the year, and with BKX hitting our price target, it makes sense to cash out the trade.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n

P.S.<\/strong> I identified this winning trade using my “Magic Pattern” system of trading. I use this consistently to help my subscribers make triple-digit gains.<\/p>\n

Check it out right here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

I used the \u201cmagic pattern\u201d for this winning trade on the bank sector\u2026<\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-22376","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=22376"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22376\/revisions"}],"predecessor-version":[{"id":23010,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22376\/revisions\/23010"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=22376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=22376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=22376"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=22376"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=22376"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=22376"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=22376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}