{"id":6133,"date":"2017-09-08T07:30:00","date_gmt":"2017-09-08T07:30:00","guid":{"rendered":"https:\/market-minute\/jackson-hole-was-not-kind-to-bank-stocks\/"},"modified":"2017-09-08T07:30:00","modified_gmt":"2017-09-08T07:30:00","slug":"jackson-hole-was-not-kind-to-bank-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/jackson-hole-was-not-kind-to-bank-stocks\/","title":{"rendered":"Jackson Hole Was Not Kind to Bank Stocks"},"content":{"rendered":"

\tTwo weeks ago, the world’s financial bigwigs got together in Jackson Hole, Wyoming, to talk about world economic policies and trends.<\/p>\n

\tHaving not yet received my bigwig membership card, I stayed home and searched out trading ideas instead.<\/p>\n

\tSo, while Janet and Mario and the rest of the financial elite were droning on about the prospects for a 2% inflation rate, how best to pare back zero-interest-rate policy (ZIRP), and how big banks like Wells Fargo have lowered their carbon footprint by eliminating customer deposit slips, I was telling you to short bank stocks<\/a>.<\/p>\n

\tSpecifically, we took a look at the Financial Sector Select SPDR Fund (XLF) – an exchange-traded fund made up of bank stocks.<\/p>\n

\tI called it “an ideal short-selling setup.” I suggested traders could short XLF at about $24.80 per share and look for a move at least to the $24.40 level, or lower.<\/p>\n

\tWell, here’s what has happened…<\/p>\n

\t\"\"<\/p>\n

\tThe red arrow indicates where XLF was trading when I suggested shorting the stock. This was an “ideal” setup because XLF was bumping into the resistance of both its 9-day exponential moving average (EMA) and its 50-day moving average (MA).<\/p>\n

\tIf it rallied much above resistance, traders could exit the short position for just a small loss. Otherwise, if resistance held, XLF could reverse lower.<\/p>\n

\tResistance held. XLF closed yesterday at $23.88 per share. Traders who shorted the stock at $24.80 have a $0.92 per share profit. That’s a gain of almost 4% in just two weeks.<\/p>\n

\tNow is the time to close that trade and take the profit.<\/p>\n

\tXLF is testing the support of its mid-June low. And it’s oversold and overextended from its moving average lines. This is a logical area to look for a short-term bounce.<\/p>\n

\tWe can always look to get back into a similar short position once XLF works off its oversold conditions. For now, though, traders should book the profits and move to the sidelines.<\/p>\n

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

\t<\/div>\n

\tJeff Clark<\/p>\n

\tP.S. <\/strong>Do you see more long-term downside for banks ahead? Send me your thoughts – along with any questions, suggestions, or great trading stories – right here<\/a>.<\/p>\n

\tReader Mailbag<\/h2>\n

\tIn today’s mailbag, some kind words from satisfied Delta Report<\/em> subscribers…<\/p>\n

\n

\t\tI very much enjoy your trading approach. I especially like your candor. You “tell it like it is.” I certainly respect that.<\/p>\n

\t\tKindest regards from a very satisfied lifetime subscriber.<\/p>\n

\t\t–<\/strong> John<\/strong><\/strong><\/strong><\/strong><\/strong><\/span><\/p>\n<\/blockquote>\n

\n

\t\tThank you so much for all your commentary. I stalk you on Delta Direct<\/em> every day. ; – )<\/p>\n

\t\t–<\/strong> Mark<\/strong><\/strong><\/strong><\/strong><\/strong><\/span><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

While Janet and Mario droned on in Jackson Hole, I told you to short bank stocks\u2026<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"open","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-6133","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\/6133","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\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=6133"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/6133\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=6133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=6133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=6133"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=6133"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=6133"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=6133"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=6133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}