• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Bank Earnings Up — Time to Look at Regional Banks ETF
Stock

Bank Earnings Up — Time to Look at Regional Banks ETF

by January 8, 2024
by January 8, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Starting with the Jeffries Group on January 9th, by Friday, we will see Bank of America (BAC), JP Morgan (JPM), Wells Fargo (WFC), and Citigroup (C), as well as a few other banks, all report earnings.

In my 2024 Outlook and this Year of the Dragon, Raymond Lo writes, “The Dragon is considered a ‘Star of Arts.’ The industries that will perform better in the year of the Dragon will be industries related to Metal element and Wood element. Metal industries are banking…”

Hence, one can assume that bank stocks, which already started off the year extremely well, have potential to shine.

However, we know that assumptions can be tricky. There are those who still believe credit issues with Regional Banks could put pressure on the financial markets.

“U.S. regional banks have a tougher road to growing profits in 2024 as they face pressure to pay more to depositors versus larger peers while demand from borrowers stays subdued.

“With the outlook for interest rates more uncertain, regional lenders’ earnings will also be restrained because they are tied into securities holdings that are losing money on paper, instead of making loans or investing in higher-yielding assets, said analysts.” — Saeed Azhar, Reuters

With KRE into strong resistance on the monthly charts, what should we be looking for this week?

S&P and Moody’s Investors Service cut credit ratings and revised outlooks for a slew of U.S. banks in recent months on the heels of the Silicon Valley Bank collapse, reminiscent of 2008. Both agencies warned that funding risks and weaker profits will likely test the sector’s credit strength.

This is why watching the chart of KRE could be important. While big banks prospered after the regional bank debacle, we know that more stress could be yet another pick-up stick for the economy, the Fed policy on rates and the stock market.

On the monthly chart, 54.00-55.50 is major resistance using the 23-month moving average (blue) and the 80-month MA (green). That price level also corresponds to the “scene of the crime” from last March. Ideally, bulls should feel safer in all the bank stocks if KRE can clear that resistance. And we don’t want to see KRE fail 50.00 once earnings are reported.

I almost gave our Prodigal Son (yes in the economic modern family) up for dead. Perhaps it been more comatose. Regardless, we shall know soon enough, as earnings, support, resistance, and the 6-month calendar range all align.

Click this link to get your free copy of the Outlook 2024 and stay in the loop!

This is for educational purposes only. Trading comes with risk.

If you find it difficult to execute the MarketGauge strategies or would like to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com, our Head of Institutional Sales. Cell: 612-518-2482.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

The Money Show is having a speaker’s special promotion for all of my followers to receive a Standard Pass for the Las Vegas MoneyShow for ONLY $99!!!!

Traders World Fintech Awards

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth.

Grow your wealth today and plant your money tree!

“I grew my money tree and so can you!” – Mish Schneider

Follow Mish on X @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish and Maggie Lake discuss inflation (given the wage component in the payroll report), Bitcoin (given the looming deadline for ETF news), the market outlook, small caps, and emerging markets on this video from Real Vision.

Mish covers war, energy, food and a pick of the day on Business First AM.

On the Tuesday, January 2 edition of StockCharts TV’s The Final Bar, Mish (starting at 22:21) talks small caps, retail, junk, and why all three matter in 2024 a lot.

In this appearance on BNN Bloomberg, Mish talks a particularly interesting chart, plus other places to invest in 2024.

In this appearance on Fox Business’ Making Money with Charles Payne, Mish talks with Cheryl Casone about Bitcoin’s volatility and why EVs may not be such a great place to invest in right now.

Recorded on December 28, Mish talks about themes for 2024 to look for, and tells you where to focus, what to buy, and what to avoid depending on economic and market conditions on Singapore Breakfast Bites.

Mish sits down with 2 other market experts to help you prepare for 2024 with predictions, picks, and technical analysis in StockCharts TV’s Charting Forward special.

Recorded December 27, Mish gives you a quick snippet of the overall macro prediction for 2024 on The Street with J.D. Durkin.

Coming Up:

January 22: Your Daily Five, StockCharts TV

January 24: Yahoo! Finance

Weekly: Business First AM, CMC Markets

ETF Summary

S&P 500 (SPY): 480 all-time highs, 460 underlying support.Russell 2000 (IWM): 195 pivotal, 180 major support.Dow (DIA): Needs to hold 370.Nasdaq (QQQ): 390 major support with 408 resistance.Regional Banks (KRE): 47 support, 55 resistance.Semiconductors (SMH): 170 cleared, with this sector back in the lead.Transportation (IYT): Needs to hold 250.Biotechnology (IBB): 130 pivotal support.Retail (XRT): 70 now key and pivotal.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

You Might Also Like
  • 3 Expert Earnings Plays: Maximizing Reward, Minimizing Risk
  • The Battle for Burgerdom: McDonald’s, Jack in the Box, and Burger King
  • Swing Trading with Point & Figure
  • Bottom-Up Stock Picking Made Easy with This Automated Scanning Set-Up
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The Hoax of Modern Finance – Part 4: Misuse of Statistics and Other Controversial Practices
next post
Conservatives revolt against Johnson-Schumer deal to avoid government shutdown: ‘Worse than we thought’

You may also like

Distribution Alert: QQQ Looks Top-Heavy as Energy Stocks Gush Higher

August 6, 2023

Higher Gold Price Coming, But Investors Must Be Patient

January 30, 2024

The Bullish Case for Gold

February 18, 2023

The Kids: Semiconductors, Biotechnology, Regional Banks

October 21, 2023

This Stock is up a Startling 90% This Year: Last...

December 28, 2023

Bonds: Don’t Forget the Long-Term Trend

September 14, 2023

Is “Wonder Woman” Semiconductors Immortal?

May 13, 2023

Gold Prices: De-Dollarization, Inflation, and $3,000 Gold—What You Need to...

January 14, 2025

Ready Yourself for 2024 With Macro to Micro Analysis

December 29, 2023

MEM TV: Time To SELL EVERYTHING?!

April 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025
    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,579)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’...

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,579)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Percent Scale PnF Technique. Nvidia Case...

    September 10, 2023

    Why NVDA’s Stock Price Shift Could...

    February 11, 2025

    Will the Market Internals Turn More...

    March 8, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here