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Stocks Edge Back Up: Short Covering or Sustainable Rebound?

By  +Follow June 27, 2013 1:23PM
Tickers Mentioned:

SqueezeThe market opened up the week with a sharp move lower, but has been gradually working its way back up. Is this mini-rally a sign of strength or a trap for bulls? Equities.com asked Toni Turner of TrendStar Trading Group her thoughts in this week's interview, and where she thinks the opportunities are in this market.

EQ: The market got a scare earlier this week sparked by significant concerns coming out of China. Despite some intraday volatility, the major indexes seem to be edging up again. What are your thoughts on the movement so far?

Turner: We have two primary concerns. We have China's potential credit bubble, and we have a sudden rise in interest rates in the U.S. that can potentially give a belly punch to our economy just as it is showing signs of getting on its feet. To me, the move down is understandable, but now we will see if Monday was the so called "bottom" of this move lower on the S&P 500, and if the rebound we are enjoying now is sustainable.

We also had some good news this week with the Case-Shiller index and durable goods orders, as well as other economic reports. Of course, some of the recent bounce in the past few days has been due to a short squeeze. So I don't assume this short term rally is necessarily a signal that everything is OK now. I'll need at least a few more days to see if this is simply short covering or if investors are really getting back into the market.

We have to remember two things: the market typically moves higher heading into a holiday—July 4 is next Thursday—and we are closing out the second quarter, which means there's window dressing right now as we close it out. So next week being a holiday week is going to be shortened and it may be a bit flat, with many institutional traders and investors on vacation. But I believe the week of July 8, we're going to get a reality check.

EQ: Longer-term investors may not like the short-term volatility that we're starting to experience in the market, but for active day traders, does this mean more opportunities to take advantage of?

Turner: Absolutely. Short-term traders like volume and volatility. That's our mantra. We can't make money in a flat market. To that point, the last move down and then the quick rebound off of the low gave nimble traders quite a bit to work with.

EQ: Regional bank stocks have been getting more attention, as you tweeted recently. Is this because they stand to benefit if and when the Fed begins to taper the stimulus program?

Turner: That's part of it. Naturally, if interest rates move higher, banks as a whole, will benefit as they can charge customers higher interest rates on loans. Additionally, the Case-Shiller 20 City index came in this week 12.1 percent improved in home prices over the same period last year. Regional banks typically benefit from improving home prices. Plus, we have an infusion of foreign buyers coming into the U.S., mainly from Asia, who are buying up properties, and I know for a fact that certainly not all of them are paying cash. Many of them are financing these purchases. That stands to benefit regional banks.

Also, if you noticed, regional banks did not fall off a cliff when the market moved lower. If you look at the SPDR S&P Regional Banking ETF (KRE), when the market moved lower, the KRE remained above its 50-day moving average, and many of the banks in that space have moved higher over the last few days.

EQ: What are some other stock sectors and industry groups that look appealing to you? Which ones do you want to avoid?

Turner: I do like the regional banks and the KRE on a pullback to between $33 and $33.25. It jumped up over the last couple of days.

If bond prices actually find a low here, and start to rise in the next few days, I might tiptoe into the iShares Dow Jones US Real Estate (IYR). Mostly though, except for quick trades, I'm standing on the sidelines and I'm waiting for the market to decide what it's going to do next.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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Results for KRE
Market Int Center
30 Jul 15 09:48:09
S&P Regional Banking ETF SPDR $KRE Showing Bearish Technicals With Resistance At $44.00 ( http://t.co/WPPoHQyigH )
J-F Owczarczak
30 Jul 15 07:50:29
#KRE http://t.co/npZhMiEAXv Pot. intermed top in an Uptrend LONGERTERM Wly-Dly-Hly combo chart $KRE #stocks #banks https://t.co/EdJrM6GeXP
30 Jul 15 05:50:18
_XRT Exchange http://t.co/FPKJbAwpC1 $_XRT $KRE $JNUG $F #_XRT #nasdaq #nasdaq
IH News Desk
30 Jul 15 05:41:09
KRE SPDR KBW Regional Banking Index ETF Stock Forum http://t.co/AWdhGEzJ32 $KRE $MBLY $KITE $LUV #KRE #investing #tradeideas
30 Jul 15 05:33:45
BIDU Baidu, Inc. EOD Data http://t.co/j42slgmxNz $BIDU $CL $KRE $BLDR #BIDU #invest #pennystocks
30 Jul 15 02:48:13
IHNASDAQOMX : FB Facebook, Inc. Ask http://t.co/E2NLBmd0wY $FB $FEYE $GOOGL $KRE #FB #n… http://t.co/KKtYcs1x3r) http://t.co/CXyCa903yP
30 Jul 15 02:46:09
SBUX Starbucks Corp. Chart http://t.co/6YSV1R8lmJ $SBUX $KRE $ALRM $FIEMIND.IN #SBUX #nasdaq #stocks
30 Jul 15 02:39:39
FB Facebook, Inc. Ask http://t.co/0XdZBZLnjk $FB $FEYE $GOOGL $KRE #FB #nasdaq #stockmarket
Lucky Jimmy
29 Jul 15 15:45:03
SH ProShares Short S&P 500 Fund 52Wk Low http://t.co/m9kBiKYATW $SH $KRE $RAD $DYAX #SH #share #stocks
29 Jul 15 15:38:38
GG Goldcorp, Inc. Current Price http://t.co/kgeNNZZhkT $GG $KRE $USO $SCTY #GG #stockmarket #share
29 Jul 15 15:38:19
GPRO GoPro, Inc. Dividend http://t.co/qOvKlJv1H1 $GPRO $KRE $UA $JPM #GPRO #stock #finance
29 Jul 15 15:38:06
GDX Market Vectors Gold Miners Summary http://t.co/6oknrA2BVD $GDX $ERX $KRE $PCLN #GDX #stock #nasdaq
29 Jul 15 15:37:07
GLD SPDR Gold Trust Shares Shares http://t.co/XcSggiEKzt $GLD $DGC.TO $KRE $UA #GLD #tradeideas #stockmarket
29 Jul 15 15:37:06
FEYE FireEye Inc. E.P.S. http://t.co/Ih3p1DsGQL $FEYE $LLY $KRE $SHAK #FEYE #investing #invest
29 Jul 15 15:36:09
EEM iShares MSCI Emerging Markets Investor Opinions http://t.co/StnS4b13oO $EEM $SGYP $KRE $GREK #EEM #share #share
Lucky Jimmy
29 Jul 15 15:32:31
BIDU Baidu, Inc. Financials http://t.co/rMKbyz7YQg $BIDU $SLTD $GG $KRE #BIDU #pennystocks #finance
ETF Trends
29 Jul 15 15:00:19
Cozying up to Regional Bank ETFs While Waiting on the Fed http://t.co/gdqj9lOeXv #ETF #banks #financial #interestrates $KRE $XLF $KBE
Tom Lydon
29 Jul 15 14:55:07
Cozying up to Regional Bank ETFs While Waiting on the Fed http://t.co/PI443bW7Zj #ETF #banks #financial #interestrates $KRE $XLF $KBE
29 Jul 15 14:47:59
Market Int Center
29 Jul 15 11:13:27
Potential S&P Regional Banking ETF SPDR $KRE Trade Has 1.93% Downside Protection ( http://t.co/RCb7N5xOkH )
29 Jul 15 10:39:57
SPDR S&P Regional Banking ETF (KRE) 43.44 $KRE After Yesterday's Decline of 1.51%, SPDR KBW Regional Banking E http://t.co/qyjEQCbm2x
29 Jul 15 10:20:52
KRE -0.88% Stock Charts $KRE K.R. Energy S.p.A. (MCI) Last Updated: 07/29/2015 12:20:51 KRE Stock Chart - 1 Mo http://t.co/73vz5qgEY8
29 Jul 15 10:15:04
Your Federal Reserve ETF Playbook $KRE $UUP $XLU http://t.co/f46na46a97
29 Jul 15 09:51:37
ZIOP ZIOPHARM Oncology, Inc. Dividend http://t.co/Yqbni5bjnB $ZIOP $SH $FSLR $KRE #ZIOP #invest #tradeideas
29 Jul 15 09:51:12
XLF Financials Select Sector SPDR Stock Message Board http://t.co/bEWRprMwZO $XLF $SDS $TBT $KRE #XLF #nasdaq #tradeideas
29 Jul 15 09:49:21
SMF.TO Semafo, Inc. Investor Opinions http://t.co/YgvRYuH64J $SMF.TO $GS $KRE $AKS #SMF.TO #share #finance
Lucky Jimmy
29 Jul 15 09:49:20
SH ProShares Short S&P 500 Fund News http://t.co/eVlOe4YFhp $SH $JNUG $TWTR $KRE #SH #investing #stockmarket
29 Jul 15 09:49:20
USO United States Oil Fund, LP P/E Ratio http://t.co/emZjGn4YOA $USO $PCLN $KRE $HLF #USO #stocks #nasdaq
29 Jul 15 09:49:19
UNP Union Pacific Corp. Change http://t.co/4BuVP9zmOx $UNP $KRE $BIIB $GDXJ #UNP #invest #share
29 Jul 15 09:49:08
UWTI VelocityShares 3x Long Crude ETN 52Wk Low http://t.co/gEyj2EZiZl $UWTI $KRE $MU $PANW #UWTI #pennystocks #nasdaq
29 Jul 15 09:48:25
KRE SPDR KBW Regional Banking Index ETF Summary http://t.co/nh4dBJYlq6 $KRE $GILD $F $RSX #KRE #pennystocks #tradeideas
29 Jul 15 09:46:18
JUNO Juno Therapeutics, Inc. Stock Forum http://t.co/IX82YmcUlW $JUNO $G.TO $NHTC $KRE #JUNO #pennystocks #stockmarket
Lucky Jimmy
29 Jul 15 09:46:09
KRE SPDR KBW Regional Banking Index ETF Ideas http://t.co/Mjh3E9OUh7 $KRE $SGG $C $FB #KRE #investing #stockmarket
29 Jul 15 09:46:06
KRE SPDR KBW Regional Banking Index ETF E.P.S. http://t.co/jdSdtDMwHe $KRE $DWTI $UUP $GRCU #KRE #stocks #stockmarket
Investors Hangout
29 Jul 15 09:46:06
KRE SPDR KBW Regional Banking Index ETF Yield http://t.co/Wycd0A87M7 $KRE $PCLN $WFM $C #KRE #tradeideas #stocks
29 Jul 15 09:46:05
KRE SPDR KBW Regional Banking Index ETF 52Wk Low http://t.co/7p5yLZiEIz $KRE $UNP $MU $DRV #KRE #stockmarket #stockmarket
29 Jul 15 09:46:04
KRE SPDR KBW Regional Banking Index ETF % Change http://t.co/ru79V4mxkq $KRE $BX $EXPE $VDSI #KRE #tradeideas #investing
29 Jul 15 09:45:05
KRE SPDR KBW Regional Banking Index ETF P/E Ratio http://t.co/Z8V83QmeN8 $KRE $CX $CEF $IBM #KRE #stock #invest
Lucky Jimmy
29 Jul 15 09:44:41
HLF Herbalife Ltd. Quotes http://t.co/KAuvTfQ2JX $HLF $EA $KRE $TSLA #HLF #stockmarket #invest
29 Jul 15 09:44:37
JUNO Juno Therapeutics, Inc. Stock Forum http://t.co/m4x1Fq9TdJ $JUNO $CURE $KRE $TZA #JUNO #share #nasdaq
29 Jul 15 09:44:04
IAU iShares COMEX Gold Trust Investor Opinions http://t.co/H5w1E33Bjz $IAU $LUV $AUY $KRE #IAU #pennystocks #stockmarket
29 Jul 15 09:44:02
NYCB New York Community Bancorp Short Sales http://t.co/sCxO4ApJ05 $NYCB $KRE $FXI $UUP #NYCB #stock #stocks
29 Jul 15 09:43:35
KRE SPDR KBW Regional Banking Index ETF Change http://t.co/FANFtTZz3w $KRE $KR $BIDU $GDXJ #KRE #stock #tradeideas
Rosner Stocks
29 Jul 15 09:43:34
KRE SPDR KBW Regional Banking Index ETF E.P.S. http://t.co/DpQpGGWWOk $KRE $NUGT $XOMA $JNK #KRE #investing #stock
29 Jul 15 09:43:34
KRE SPDR KBW Regional Banking Index ETF Day Low http://t.co/pZinvC7Xpn $KRE $PLUG $SWKS $PHM.V #KRE #stock #stockmarket
IH News Desk
29 Jul 15 09:42:35
KMI Kinder Morgan Inc. Volume http://t.co/EQrd4lhMGe $KMI $GLD $V $KRE #KMI #pennystocks #investing
29 Jul 15 09:42:34
KRE SPDR KBW Regional Banking Index ETF Short Sales http://t.co/6pcEkfyQ6k $KRE $EEM $COP $PBR #KRE #stocks #stockmarket
29 Jul 15 09:42:07
KITE Kite Pharma, Inc. Short Sales http://t.co/Od4gBckB7M $KITE $KRE $RIG $GNK #KITE #stockmarket #pennystocks
29 Jul 15 09:41:33
JPM J.P. Morgan Chase & Co. Company Info http://t.co/yxHtvfEZ1g $JPM $KRE $KMI $SSO #JPM #stock #share
29 Jul 15 09:40:52
IAU iShares COMEX Gold Trust Company Info http://t.co/WF1bW2oilD $IAU $F $KRE $CX #IAU #stockmarket #finance
By  +Follow June 27, 2013 1:23PM



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