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Stocks Edge Back Up: Short Covering or Sustainable Rebound?

By  +Follow June 27, 2013 1:23PM
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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
Carl Icahn
2 Sep 15 12:53:07
RT @johnrutledge: Have bets on the sector continuing to improve. $XHB $LOW $HD $HDS. Also lenders. $WFC $KRE $IAT https://t.co/OtHcfyEkWk
John Anderson
2 Sep 15 12:52:58
RT @johnrutledge: Have bets on the sector continuing to improve. $XHB $LOW $HD $HDS. Also lenders. $WFC $KRE $IAT https://t.co/OtHcfyEkWk
Dr. John Rutledge
2 Sep 15 12:52:23
Have bets on the sector continuing to improve. $XHB $LOW $HD $HDS. Also lenders. $WFC $KRE $IAT https://t.co/OtHcfyEkWk
FinGraphs
2 Sep 15 01:16:16
RT @fg4etf: $KRE http://t.co/zJysoIZ8c2 Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/iT9xmzAE9W
FinGraphs ETF
2 Sep 15 01:16:13
$KRE http://t.co/zJysoIZ8c2 Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/iT9xmzAE9W
ShortStockVolume.com
1 Sep 15 14:31:33
Top Shorted Stocks 09/01/15... 14. $DIA 75.68% 15. $IAU 75.65% 16. $DE 75.18% 17. $CNX 74.69% 18. $KRE 74.23% 19. $BAM 74.12%...
ShortStockVolume.com
1 Sep 15 14:31:31
Top Shorted Stocks 09/01/15... 16. $DE 75.18% 17. $CNX 74.69% 18. $KRE 74.23%... http://t.co/xHStpsC6Vt
YourPersonalTrader
1 Sep 15 12:55:53
ISM # did that! Ask $KRE $XLF https://t.co/CZ4uovhfqH
Binary Trader Pro
1 Sep 15 10:50:40
RT http://t.co/AiIftLmwEs RT fg4etf: $KRE http://t.co/L7L7IHv9Lo Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m c… http://t.co/0y2HKAGgvQ
Binary Trader Pro
1 Sep 15 10:50:39
RT http://t.co/aTXplEehtR $KRE http://t.co/L7L7IHv9Lo Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m combo chart … http://t.co/0y2HKAGgvQ
FinGraphs
1 Sep 15 10:49:47
RT @fg4etf: $KRE http://t.co/zJysoIZ8c2 Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/p8kVohVmK7
FinGraphs ETF
1 Sep 15 10:49:44
$KRE http://t.co/zJysoIZ8c2 Pot. cont. Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/p8kVohVmK7
YourPersonalTrader
1 Sep 15 10:13:44
@HCPG @traderstewie ISM knocks back IR hike date/odds $XLF $KRE
YourPersonalTrader
1 Sep 15 10:05:41
Guess ISM # pushed back IR hike date and took $XLF $KRE for a ride.. Yeah, broad market likes dovish stuff too $SPY $QQQ
Rob Smith
1 Sep 15 07:22:02
banks stay weak $XLF $KRE
Al Sabogal
31 Aug 15 12:41:42
.@alsabogal $KRE nicely green which get the bigger benefit...some other Fins are still red
FinGraphs
31 Aug 15 09:32:19
RT @fg4etf: $KRE http://t.co/zJysoIZ8c2 Pot. intermed bot in Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/BZcM1hWN…
FinGraphs ETF
31 Aug 15 09:32:16
$KRE http://t.co/zJysoIZ8c2 Pot. intermed bot in Downtrend : INTRAWEEK 60m-15m-4m combo chart #etf #stocks http://t.co/BZcM1hWNh3
Breaking News
31 Aug 15 04:30:03
$KRE $CME: Fast Money Traders Share The Stocks They Would Trade If The Fed …: http://t.co/bHH6Xm1Vp5
Investors Hangout
30 Aug 15 15:43:07
KRE SPDR KBW Regional Banking Index ETF Stock Forum http://t.co/sAlhd3uaN6 $KRE $SNSS $JBSS $DXJ #KRE #finance #stockmarket
IH News Desk
30 Aug 15 15:43:04
MRVC MRV Communications, Inc. Current Price http://t.co/TZQoQgFOUZ $MRVC $GPRO $BP $KRE #MRVC #share #finance
Jake13
30 Aug 15 15:42:07
KRE SPDR KBW Regional Banking Index ETF Filings http://t.co/9e5FPkPG4t $KRE $IWM $SCO $INTC #KRE #investing #stock
Emylers
30 Aug 15 15:38:35
GDX Market Vectors Gold Miners Stock Forum http://t.co/rxaNlkCFrh $GDX $IWM $KRE $VTI #GDX #stockmarket #stocks
nasdaqfan
30 Aug 15 15:38:07
FV First Trust Dorsey Wright Focus 5 ETF Prev Close http://t.co/fPxJYTsWNs $FV $JNK $KRE $NGD #FV #stockmarket #finance
Rosner Stocks
30 Aug 15 15:32:05
AHGP Alliance Holdings GP LP Shares http://t.co/Xa3tUhWbdo $AHGP $KRE $NGD $EWZ #AHGP #investing #nasdaq
Investors Hangout
30 Aug 15 12:52:03
XOM Exxon Mobil Corp. Bid Size http://t.co/O0On3O8utO $XOM $XLU $KRE $INTC #XOM #investing #tradeideas
Stock Forums
30 Aug 15 12:46:03
SPXL Direxion Daily S&P 500 Bull 3X Shares Volume http://t.co/5tEaQCk7Fg $SPXL $EWJ $XOM $KRE #SPXL #investing #share
clayton
30 Aug 15 12:44:14
PFE Pfizer, Inc. Market Cap http://t.co/7rSLcQB3Dt $PFE $HGR $FNMA $KRE #PFE #stock #stockmarket
Stock Forums
30 Aug 15 12:43:07
KRE SPDR KBW Regional Banking Index ETF Yield http://t.co/VNlNYpB27A $KRE $CGNX $P $INTC #KRE #tradeideas #invest
Stock_Tracker
30 Aug 15 12:37:08
FBT First Trust Amex Biotechnology Index Fund Yield http://t.co/VsGWOQydKI $FBT $FB $GE $KRE #FBT #stocks #finance
DennyT
30 Aug 15 12:34:06
CURE Direxion Daily Healthcare Bull 3x Shares Ask Size http://t.co/xVopDWpAVT $CURE $KRE $MYEC $SMN #CURE #tradeideas #stock
Rosner Stocks
29 Aug 15 23:50:04
XLV Health Care Select Sector SPDR Last Trade http://t.co/IbvDtVZ6EN $XLV $KRE $CNC $VLTC #XLV #finance #nasdaq
Investors Hangout
29 Aug 15 23:44:05
KRE SPDR KBW Regional Banking Index ETF Last Price http://t.co/tFAOjQDN0F $KRE $AXMM $ANFC $ED #KRE #invest #stockmarket
Stock_Tracker
29 Aug 15 23:38:32
DVN Devon Energy Corp. Ask http://t.co/NXktyMEHu8 $DVN $ACCO $XLE $KRE #DVN #nasdaq #finance
Lucky Jimmy
29 Aug 15 17:44:07
PCLN http://t.co/K4Xv8OaXzw Inc. Shares http://t.co/Vlpqbzau4u $PCLN $CM.TO $UPRO $KRE #PCLN #invest #stocks
Stock_Tracker
29 Aug 15 17:42:02
KRE SPDR KBW Regional Banking Index ETF Investor Opinions http://t.co/QjSjaWC0DS $KRE $HGU.TO $EGRX $SGMO #KRE #stock #invest
Stock_Tracker
29 Aug 15 17:38:33
EBAY eBay, Inc. Ex-Div Date http://t.co/olhpEbWk8F $EBAY $AA $KRE $DAG #EBAY #stocks #finance
leahanne
29 Aug 15 17:38:07
DEWM Dewmar International BMC Inc. Prev Close http://t.co/p4LGY07oBF $DEWM $BAM/A.TO $KRE $AMAG #DEWM #finance #stock
Investors Hangout
29 Aug 15 12:54:35
XLU Utilities Select Sector SPDR Ex-Div Date http://t.co/DqtX2KOQ4z $XLU $KRE $A $HYG #XLU #investing #share
clayton
29 Aug 15 12:48:37
SBLK Star Bulk Carriers Corp. Ask http://t.co/cg0tlVqfwO $SBLK $MPC $BABA $KRE #SBLK #stockmarket #stock
Jake13
29 Aug 15 12:47:13
STMP http://t.co/4U0qfDvBoZ, Inc. Message Board Posts http://t.co/hHmwiRjS2J $STMP $KRE $GCO $AVXL #STMP #stock #nasdaq
PolgarStocks
29 Aug 15 12:44:22
PSX Phillips 66 Chart http://t.co/R8YuDQOfzL $PSX $KRE $FPX $LNKD #PSX #stockmarket #stock
PolgarStocks
29 Aug 15 12:44:20
OWOO One World Holdings Inc. News http://t.co/QOce8NQWym $OWOO $KRE $REM $NAV #OWOO #stock #stocks
PolgarStocks
29 Aug 15 12:44:20
OWOO One World Holdings Inc. News http://t.co/LCR4xaiGy3 $OWOO $KRE $REM $NAV #OWOO #stock #stocks
PolgarStocks
29 Aug 15 12:44:19
OWOO One World Holdings Inc. News http://t.co/1u7UeM9Snk $OWOO $KRE $REM $NAV #OWOO #stock #stocks
PolgarStocks
29 Aug 15 12:43:11
OWOO One World Holdings Inc. News http://t.co/XnTYyUu9s6 $OWOO $KRE $REM $NAV #OWOO #stock #stocks
PolgarStocks
29 Aug 15 12:43:11
OWOO One World Holdings Inc. News http://t.co/5wvI3xiBBa $OWOO $KRE $REM $NAV #OWOO #stock #stocks
leahanne
29 Aug 15 12:41:49
KRE SPDR KBW Regional Banking Index ETF Message Board Posts http://t.co/StG1PcvWOT $KRE $XLE $SWKS $MKL #KRE #stock #invest
leahanne
29 Aug 15 12:41:49
KRE SPDR KBW Regional Banking Index ETF Day High http://t.co/KAAorNNenm $KRE $ADEP $ADMD $EA #KRE #share #stock
leahanne
29 Aug 15 12:41:49
KRE SPDR KBW Regional Banking Index ETF Day High http://t.co/yDmdXZTog4 $KRE $ADEP $ADMD $EA #KRE #share #stock
				
				
By  +Follow June 27, 2013 1:23PM
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