It's The 50 & 57 Market!

JC Parets
January 14, 2019

Some of the most important stocks in the world are at such critical levels that we'd be fools to ignore it.

More specifically, I'm referring to Financials: Broker Dealers and Regional Banks in particular.

As we are all aware, Financials peaked in 2007 before the epic collapse throughout 2008 and into early 2009. The repercussions of those events were felt all over the world. Some people are calling for a repeat of that period. Could we actually see it? Maybe. But I think it's going to depend a lot on the outcome of the current battle taking place between buyers and sellers at one of the most critical levels in the history of these stocks.

In late 2016, Regional Banks were able to break above the 2007 highs to complete a near decade-long base. That breakout was then retested successfully in the second half of 2017. Or was it?

As we see here, prices last month fell back below those 2007 highs. The question that is presented here is whether this is just a messy retest of the 2007 highs, or if that breakout last year was a massive failure? The implications of this being a failed breakout would likely be substantially lower prices, another 20% lower, at least.

$50 was the price of $KRE at the 2007 highs. We're at $50 now.

We're seeing literally the exact same thing happening in Broker Dealers & Exchanges. Look at the breakout in 2017 above the epic 2007 highs. $IAI is in a similar predicament as Regional Banks. Was that breakout a massive failure and now we drop another 20%+ in prices? Or is this just a messy retest?

$57 was the price of $IAI at the 2007 highs. We're at $57 now.

This is what I'm calling the 50 & 57 market. Stock market crashes aren't happening if these indexes are above their respective levels. The big problems will occur with these indexes below those levels. Look how important these sectors are to US Stocks:

Tuesday January 15th is our Monthly Conference Call for Premium Members where I will be going over all of these markets and the best trades to take advantage of the current environment. Most importantly, we'll be focusing on how to manage risk in this market.

You can register for it here risk Free or Login in here if you're already a member.

See you tomorrow!

JC

 

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