Let’s Bet Against the Banks

The banks sector is overbought – here’s what to do. [Jeff Clark's Market Minute]( Let’s Bet Against the Banks By Jeff Clark, editor, Market Minute It’s time to bet against the banks. Bank stocks have been on fire in 2024. The Financial Select Sector Fund (XLF) is up nearly 40% this year. It has been leading the stock market higher. Now though, the sector is overbought. And, the bullish percent index for the financial sector (BPFINA) is about to generate its fifth sell signal in two months. Look at this chart of BPFINA… [chart]( [(Click here to expand image)]( A bullish percent index (BPI) shows the percentage of stocks in a sector that are trading in bullish technical patterns. It’s an easy way to measure overbought and oversold conditions for a sector. Typically, a reading above 80 – meaning 80% of the stocks are trading in bullish technical patterns – means a sector is overbought. Readings below 30 indicate oversold conditions. Recommended Link [Millionaire-Trader Reveals “The Magic Pattern”]( [image]( Over the last 20 years, we’ve experienced the biggest bull-market in history. And yet, JP Morgan reports the typical investor has only earned about 2.9% a year, barely beating inflation. Fortunately, there is an alternative. In fact, thanks to a powerful scientific-phenomenon known as the “Magic Pattern,” millionaire-trader Jeff Clark has delivered over 1,000 winning trade recommendations making him a “go to” advisor for America’s wealthy. Today, Jeff is tracking a handful of niche-sector trades he believes could surge 227%, 333%, even 490% in the next 30 days. [Go here now for the full story.]( -- Buy and sell signals occur when a BPI reaches extreme levels and then reverses. For example, when a BPI rallies above 80 and then turns lower it generates a sell signal. When a BPI dips below 30 and then turns higher, that’s usually time to buy. At least, those are the general rules. The red arrows on the chart point to the three BPFINA sell signals this year. You’ll notice the sell signals appear in clusters – with three near the start of the year, three in March, two in May, and four sell signals clustered over the past two months. Here’s how the KBW Bank Index (BKX) performed following the previous clusters… [chart]( [(Click here to expand image)]( Following these “cluster sell signals” BKX declined 3% in two weeks in February, 7% in three weeks in April, 5% in three weeks in June, and 9% in two weeks in August. We now have a cluster of four sell signals over the past two months. And, when the BPFINA turns lower again from its current overbought condition, we’ll get a fifth sell signal. That could happen as soon as today. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Since the BKX declined to slightly below its 50-day moving average following the four previous times the index was in this condition, it’s likely we’ll see similar action on the next decline. In other words, it looks like the banking sector is setting up for at least a 10% decline. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute P.S. I just put out a trade to take advantage of this to subscribers of my entry-level service Jeff Clark Trader. I identified the trade using one specific pattern… my “magic pattern,” which has spotted winning trades for consistent gains like 152%… 222%… and even 329% in just days. Check it out [right here](. [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use]( | [Unsubscribe](