Interactive Brokers is Best of the Discount Brokerages
- Posted by Greg Harmon
- on April 8th, 2014
My assessment is purely based on the price action on the weekly charts. Take a look. The chart for E*Trade Financial, $ETFC, although it has a cool symbol in its name is pulling back from a top 3 weeks ago. The current week may print a doji, signalling indecision, if the current action keeps up, but the Relative Strength Index (RSI) is falling at the mid line and the MACD has crossed down. With the 38.2% retracement of the move higher still far below, it needs to prove it wants to change direction.
Charles Schwab, $SCHW, is in the same boat. Testing the bottom of a rising channel, but with the RSI making a lower low and the MACD crossed down and continuing to fall. You could try it long here on a tight stop around 25.25 looking for a bounce at the channel, but again, I would prefer some proof or a reversal.
Interactive Brokers, $IBKR, chart is a stark contrast. Having pulled back and made a double bottom, the price action is actually tracing out a bearish Shark harmonic, but with a Potential Reversal Zone (PRZ) above at 24.52. The RSI has found a bottom and is rising and the MACD is leveling after the pullback. If you want a brokerage stock, Interactive Brokers should be the one. Maybe they will give me some free trades for this? 😉
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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