These are the Banks You Are Looking For
JPM, WFC, C, and PNC all report Friday and will give us the answers we seek.
This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.
The financial sector has 10% more to drop before it hits its recent lows near $30 and it honestly can’t get there fast enough.
I want pain in this sector. Why?
To get it over with already. I’ve heard and seen enough, prices are sticky at best and potentially moving higher.
Consumers are starting to weaken.
I’m not trying to be a downer, but the sooner we get this recognition of current economic conditions the better.
The longer the wait, the steeper the decline. If it is warranted, it is inevitable.
All of that said, I am still optimistic about Q4 but after that it is anyone’s guess.
It is tough to square being bullish on big tech and semiconductors with expecting rates to remain high and energy to move higher.
But that is exactly what I see. So that is where my interests are. For the most part anyway.
Today I am focused on banks and one in particular.
Not JPM. They’re global and I’m looking for more U.S. specific data.
WFC and C won’t give me what I’m after.
PNC Bank is going to provide the most interesting insights to the health of the economy in the U.S.
PNC has a network of branches across the country, more so on the east coast. It serves local communities and is know for its customer service.
I think we could get better insights into the overall state of the economy by the data that comes from PNC Bank so that is what I’m focused on.
Charts to Watch
JPM needs to hold the 50-week simple moving average, which is just above $140.
If that holds, JPM could trade sideways or possibly make an attempt at $160 again. I’m not overly excited about this but it is worth noting.
The weekly chart gives a clean look at the uptrend that started a year ago.
Now compare/contrast the JPM chart with what we have seen for PNC over the past twelve months.
PNC is below resistance at $123, which is also where a large volume shelf can be found (a price that has a lot of volume traded near or at it).
Add in the 20-week SMA just above near $125 and there is a lot of resistance to any attempts to move higher.
If PNC does break through it would be a technically strong set up for big upside in the near term.
We will likely get a rejection at $123 if earnings or guidance is poor which would bring $111.58 up next for support.
It is going to be an interesting and potentially volatile close to the week.
Schedule Update
I’ve got a lot of great things in the mix. This newsletter, incorporating more audio/podcast material, and posting more on X are just a few things I’m doing.
If you like stories about the stock market you might also like to know that I’m writing a book full of exactly that. Short stories about the stock market.
I have decades of experience and so many stories to share. It is going to be fun to write!
I’m also working with WOLF Financial on a few new efforts. More to come on that front and I’ll continue to write for the WOLF newsletter every Sunday as well.
All of this has required that I assess my schedule and fine tune a bit.
I thought you’d be interested to know what the new schedule looks like.
I am excited about it because I will be able to be much more consistent.
Here's the new schedule:
Sundays: WOLF Financial Newsletter, A Trader’s Education (ATR) Newsletter, The Trading Triangle Podcast
Mondays: X Spaces
Tue-Wed-Thu: ATR Morning Audio/Written Newsletter Posts, X Spaces
Fridays: X Spaces
Saturdays: Family time!
Thank you for reading and let me know if there is a stock you would like me to cover or any trading topics you want to learn more about.
Have a great day and weekend ahead!
-Nate