How To Cash In On Crisis
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The market is headed higher this morning with the S&P 500 reaching over half a percent in pre-market trading. The market looks pretty bullish at the moment as all the major sectors either ended the day yesterday even or 1-2% in the green. That bullish appears to be ready to continue as we head into Thursday’s session. Given the current sentiment, let’s take a look at a possible candidate that fits the profile of our trading strategy.
SPDR S&P Bank ETF (KBE)
After the implosion of Silicon Valley Bank, many investors got spooked out of the Financial sector, more specifically, the banks. However, up over almost 3% in the past five days, the KBE looks like it might want to make a comeback.
The fact that the industry lost so much market cap during the fall of SVB is actually something that points in our favor. Now, we can look for a recovery of some of that value. Much like in the wake of the 2008 financial crisis, many investors were scared away from financials, only to see the sector recovery much of the value it lost.
This is why this fits out strategy. When we look for trades, we look for opportunities where we can get into a trade with enough time for it to play out in our favor. The idea being, we would be getting in early on the recovery, however long it lasts. Keep an eye on this sector as the market continues to push higher.
Check out the video breakdown below for more!
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I look forward to trading with you, but until then, as always…
