Fins in the Shark Tank
- Posted by Greg Harmon
- on April 29th, 2013
The Financial sector showed many charts that were set up in a bearish Shark pattern this weekend. Using the SPDR KBW Regional Banking Index ETF, $KRE, below you can see how the Shark sets up.
SPDR KBW Regional Banking Index ETF, $KRE
Most Harmonic patterns are ‘W’ like and the Shark is no exception. From the initial point at 31.94 down to 30.19 it retraced to 31.60 but then fell back to 29.72. This is the critical leg to the Shark and needs to be between a 113% and 161.8% extension of the first leg down. This then calls for a final push higher of 88.6% or 113% of the initial leg. It is at that point that the word, Bearish kicks in. For $KRE it reaches a 88.6% retracement at 31.34 and 113% at 32.14, both leaving some room higher. At that point you would look for a reversal candle lower to short for a 38.2% or 61.8% retracement of the entire pattern. Another
Regions Financial, $RF.
example can be found in Regions Financial, $RF. This one is already through the 88.6% retracement leaving the 113% to 8.53. There are many others in this sector in Shark Patterns including JP Morgan, $JPM and Bank of America, $BAC. Take a closer look yourself. If you are in in the sector, you may have “fins to the left, fins to the right and your the only bait in town.”
Join the Dragonfly Capital Views Premium Membership
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through April 2013 Expiry and sign up here.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Put a Band Aid on the Market
- Premium Earnings 10-1-14
- SPY Trends and Influencers: Monthly Edition September into October 2014
- Macro Month in Review/Preview September into October 2014
- Fixing a trade in W.W. Grainger
- Update on the Nested Head and Shoulders in the SOX
- The Harmonics in Honeywell
- Premium Earnings 9-29-14
- Top Trade Ideas for the Week of September 29, 2014: Bonus Idea
- Top Trade Ideas for the Week of September 29, 2014: The Rest