10/7 Best Idea For The Week Ahead
Yesterday we put in one of the strongest candles we’ve put in for a very long time. The SPY had a 10 point intraday range and nearly closed at the highs covering an 8 day range. More importantly we closed back over the 8 ema for the first time in 16 sessions. As you can see below the macd is curling and momentum is set to flip positive next week if we get a followthrough. The RSI is finally off of the oversold levels we were at and the market in general looks good now, if bank earnings go well, this has legs.
As for bank earnings, while everyone is bearish on banks you’ve seen the trends I post the XLF was the top trending name over the last week, were those hedges or were they actual bulls? I don’t know, but when the government steps in to save banks every time something goes wrong, how bad can it really get?
This week’s best idea is a financial with a $110B market cap that is sitting near its 200 week which is a major do or die spot, I think it is a compelling buy down here. This name has not closed below the 200 week in 3 years. I have a trade idea below that you can put on for free and potentially catch some serious upside.
