KBE Banking Sector ETF Long Swing LongKBE is in the middle of a beatdown with two of the biggest bank failures in history this week.
The share price action is reflecting overall distribution. The moving averages ( SMA 100 and SMA 200) are
parellel and not crossing. Today, the price action had a little pullback on the drop and perhaps an
early sign of reversal or at least the end of the trend into a consolidation. Price action today
is a symmetrical triangle at the POC line suggesting some dynamic stability and perhaps a pause
awaiting a reversal.
My idea is to buy weaknesses and later sell some new strengths ( or at least the weakness fixed).
Dip buying ( pull backs on the big picture) has risks associated with the rewards.
This would be with shares on the way down ( or a call option ) getting cheaper and cheaper buyers
and then start selling once shares are 10% above the cost and calls 25% above their cost once
the reversal is trending. ( Another idea is to buy a given dollar amount of shares and then 5%
as much dollar amount in put options two strikes above current price with DTE 3/24) as a
hedge ( insurance on risk).
