logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 

Equities – Your destination to connect with the growth investment community.

Stocks Edge Back Up: Short Covering or Sustainable Rebound?

By  +Follow June 27, 2013 1:23PM
Share:
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


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for KRE
Julie
20 Apr 15 10:41:06
RT @marketminute: Since b4 vacation noted $DDD $PM $RSX as picks w/ positions. Reached 1-2 profit tgts in all. $KRE remain swing long
Michele Schneider
20 Apr 15 10:00:47
Since b4 vacation noted $DDD $PM $RSX as picks w/ positions. Reached 1-2 profit tgts in all. $KRE remain swing long
Enzo Calamo
20 Apr 15 08:01:34
Lean times for Main Street banks $XLF $FAS $FAZ $UYG $KRE $VFH $KBE $IYF $IAT $SEF $IYG $FXO http://t.co/W0VJFXCpXg
#
19 Apr 15 09:49:32
Lean times for Main Street banks $XLF $FAS $FAZ $UYG $KRE $VFH $KBE $IYF $IAT $SEF $IYG $FXO http://t.co/y4v8Giuv5R
Николай Фадеев
18 Apr 15 02:24:51
Lean times for Main Street banks $XLF, $FAS, $FAZ, $UYG, $KRE, $VFH, $KBE, &#03.. http://t.co/C9uR2TL678
Николай Фадеев
18 Apr 15 02:21:12
Lean times for Main Street banks $XLF, $FAS, $FAZ, $UYG, $KRE, $VFH, $KBE, &#03.. http://t.co/GlMfN5vjJu
David Ong
17 Apr 15 18:52:42
Lean times for Main Street banks $XLF $FAS $FAZ $UYG $KRE $VFH $KBE $IYF $IAT $SEF $IYG $FXO http://t.co/hZjp4VcFR7
GThomasLackeyJr CMT
17 Apr 15 16:59:34
April 17, 2015 RS Movers http://t.co/xUC8t7o0XB $SPHB $IWC $KRE $MLPI $BJK $RHS $HFC $GSAT $SCCO $SWN $UBNT $EMN $CVX $BC $ILMN $WYNN $GG
PolgarStocks
17 Apr 15 14:54:25
$CTRP Filings Updated Friday, April 17, 2015 5:07:36 PM $COH $KRE $HD $ERX http://t.co/0vn3DNJTfZ
PolgarStocks
17 Apr 15 12:52:12
$SD Company Info Updated Friday, April 17, 2015 3:07:34 PM $JNK $KRE $EWZ $FSLR http://t.co/ORXGk2kznn
IH News Desk
17 Apr 15 11:30:39
$KMI Stock Forum Updated Friday, April 17, 2015 2:11:47 PM $LNKD $KRE $PCLN $ACT http://t.co/LpK2X9W6fT
IH News Desk
17 Apr 15 10:29:15
$KRE Last Price Updated Friday, April 17, 2015 1:11:33 PM $LNG $ISIS $NOK $MU http://t.co/AfTstlLVIc
Market Int Center
17 Apr 15 09:51:02
S&P Regional Banking ETF SPDR $KRE Showing Bullish Technicals With Resistance At $42.24 ( http://t.co/nymTb36HcD )
PolgarStocks
17 Apr 15 08:49:42
$XLP News Updated Friday, April 17, 2015 11:07:31 AM $DIA $TBT $KRE $NSC http://t.co/LU0he4St2I
Langan Stocks
17 Apr 15 08:49:39
$LNKD News Updated Friday, April 17, 2015 11:03:26 AM $KRE $XLV $QLIK $DHI http://t.co/jyy7NU2iAN
IH News Desk
17 Apr 15 08:27:52
$CBS Recent News Updated Friday, April 17, 2015 11:11:33 AM $HIMX $HLF $KRE $SLV http://t.co/LpOe4YC7wa
OneChicago
17 Apr 15 07:53:02
$KRE 20150515 Block Trade: 588 trade. ~$2.4 MM notional value.
PolgarStocks
17 Apr 15 05:46:12
$KRE Filings Updated Friday, April 17, 2015 08:07:28 AM $MCD $NBG $XIV $CBS http://t.co/VFgHcRVVKP
IH News Desk
17 Apr 15 05:25:08
$HD Company Info Updated Friday, April 17, 2015 08:11:32 AM $KRE $FXY $KNDI $RSX http://t.co/omIRAhhFPs
IH News Desk
17 Apr 15 05:25:07
$CELG Investor Opinions Updated Friday, April 17, 2015 08:11:32 AM $KRE $JAZZ $ICPT $CCJ http://t.co/RJmrf1MRtn
Langan Stocks
17 Apr 15 03:45:12
$FEYE Percent Change Updated Friday, April 17, 2015 06:03:27 AM $BIDU $HES $HPQ $KRE http://t.co/dU4qaNli7t
Langan Stocks
17 Apr 15 03:45:11
$KGC Filings Updated Friday, April 17, 2015 06:03:27 AM $AIG $LNG $KRE $TLT http://t.co/5YPtp7c33j
PolgarStocks
17 Apr 15 02:43:38
$KRE Recent News Updated Friday, April 17, 2015 05:07:29 AM $PFE $COP $DWA $DUST http://t.co/fDJM6UYAgm
Langan Stocks
17 Apr 15 02:43:36
$CMG Filings Updated Friday, April 17, 2015 05:03:26 AM $ANR $KSU $GLD $KRE http://t.co/n9sEZhbfHj
IH News Desk
17 Apr 15 02:23:14
$GDXJ Recent News Updated Friday, April 17, 2015 05:11:33 AM $BX $AVP $KRE $ANR http://t.co/dQe7ENFqtK
James DiPlata
17 Apr 15 02:16:25
RT @PolgarStocks: $KRE News Updated Friday, April 17, 2015 04:07:31 AM $CVX $ANF $KGC $ABX http://t.co/HV0OoJkRc7
Rosner Stocks
17 Apr 15 01:42:43
$DAL Company Info Updated Friday, April 17, 2015 03:59:22 AM $MBI $QLD $HD $KRE http://t.co/IbkdLa5qLw
PolgarStocks
17 Apr 15 01:42:39
$KRE News Updated Friday, April 17, 2015 04:07:31 AM $CVX $ANF $KGC $ABX http://t.co/HV0OoJkRc7
PolgarStocks
17 Apr 15 01:42:35
$COP Investor Opinions Updated Friday, April 17, 2015 04:07:31 AM $KRE $CSIQ $TBT $GOOG http://t.co/Ks3ud2shZ4
IH News Desk
17 Apr 15 01:22:39
$HES Recent News Updated Friday, April 17, 2015 04:11:35 AM $KRE $HD $CTRP $BAX http://t.co/OlkIipDL64
IH News Desk
17 Apr 15 00:21:45
$TWTR Stock Forum Updated Friday, April 17, 2015 03:11:35 AM $KRE $HAL $GS $XOM http://t.co/jggjhzahXt
Rosner Stocks
16 Apr 15 23:40:42
$DRYS Stock Forum Updated Friday, April 17, 2015 01:59:20 AM $AUY $RIG $KRE $CSCO http://t.co/YtZnZyjHDm
Rosner Stocks
16 Apr 15 22:39:51
$MDY Investor Opinions Updated Thursday, April 16, 2015 12:59:25 PM $FXE $KRE $EBAY $AXP http://t.co/RK4wNmsI3v
Rosner Stocks
16 Apr 15 19:36:42
$LULU Stock Message Board Updated Thursday, April 16, 2015 9:59:22 PM $TLT $KRE $DWA $DIS http://t.co/rf0x5M7BCa
Rosner Stocks
16 Apr 15 18:36:16
$FWDG Percent Change Updated Thursday, April 16, 2015 8:59:22 PM $MOS $MDCN $KRE $DAL http://t.co/9DB8QMx7rV
Langan Stocks
16 Apr 15 18:36:08
$JNJ Short Sales Updated Thursday, April 16, 2015 9:03:25 PM $TLT $AXP $GS $KRE http://t.co/CIDt8xNMFl
Langan Stocks
16 Apr 15 16:33:35
$MNKD Opinions Updated Thursday, April 16, 2015 7:03:28 PM $MON $KGC $KORS $KRE http://t.co/A5x4TZPk0w
ShortStockVolume.com
16 Apr 15 14:33:05
Top Shorted Stocks 04/16/15... 7. $IRDM 90.14% 8. $KRE 89.23% 9. $CNHI 88.72% 10. $EWA 87.12% 11. $EWI 86.91% 12. $FV 85.35%...
ShortStockVolume.com
16 Apr 15 14:33:02
Top Shorted Stocks 04/16/15... 7. $IRDM 90.14% 8. $KRE 89.23% 9. $CNHI 88.72%... http://t.co/Lfl91Po1T0
Market Int Center
16 Apr 15 09:31:02
S&P Regional Banking ETF SPDR $KRE Trading Near $40.75 Support Level ( http://t.co/mAZbdnfPNy )
OneChicago
16 Apr 15 07:07:02
$KRE 20150515 Block Trade: 740 trade. ~$3.1 MM notional value.
Beverage Consulting
16 Apr 15 01:28:56
RT @rosnerstocks: $KO Investor Opinions Updated Friday, April 3, 2015 9:59:21 PM $MTL $WMIH $RTRX $KRE http://t.co/bCz17Kce10
Timothy Collins
15 Apr 15 20:04:51
$KRE looks strong and $NWBI has finally busted through the top of this multi-month channel
Rob Moreno
15 Apr 15 19:22:58
SPDR S&P Regional Banking ETF $KRE testing its 2014 high. RSI and Money Flow Index crossing their 21 period averages. http://t.co/bbvpdB1Rpf
GThomasLackeyJr CMT
15 Apr 15 16:41:59
April 15, 2015 RS Movers http://t.co/cdj1tbUdT5 $SDOG $SPYV $DEF $FTC $XLE $KRE $PSCU $GRI $RIG $GE $ALNY $CRR $CFR $STI $LNC $KIM $IDXX
Richard Koza Trading
15 Apr 15 11:36:35
$KBE and $KRE bullish movement today.
Andrew Thrasher, CMT
15 Apr 15 11:32:56
Regional banks also showing some strength, outperforming the market and the broad Financial sector $KRE
David Blair
15 Apr 15 10:24:37
$KRE breaking free from its most recent box along a rising trend. Highs above to ponder. http://t.co/Al5HBa5kzC
Keebler Elf
15 Apr 15 09:14:00
$KRE -making new highs http://t.co/4c5K9JWkrj http://t.co/aToNOECzL2 #stockcharts
Mark Mansfield
15 Apr 15 07:59:25
RT @TraderMinute: $JPM $MS $GS don't need interest rates to go up. $BAC $WFC $KRE need interest rates to go up.
				
				
By  +Follow June 27, 2013 1:23PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.