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? 😉
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 2014 Expiry and sign up
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 since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Macro Week in Review/Preview September 30, 2016
- How This Week’s Top 10 Performed September 30, 2016
- Is Crude Oil Capped
- Head to Dunkin’ Donuts for National Coffee Day
- Premium Earnings 9-29-16: Costco and McCormick
- Weaving Point and Figure with Candlesticks in the S&P 500
- The Case for Lower Longer via Pimco’s Tony Crescenzi
- Premium Earnings 9-28-16: Accenture and Conagra
- The German Situation
- Premium Earnings 9-27-16: Nike and Blackberry