5 Big Bank Stocks to Cash Out of ASAP!

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bank stocks - 5 Big Bank Stocks to Cash Out of ASAP!

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U.S. equities are sliding lower on Thursday as Chicago Federal Reserve President Charles Evans raises expectations of two rate hikes this year (vs. market expectations for just one), while European bank stocks are under pressure on fears over rate cuts deeper into negative territory.

Bank Stocks to Cash Out of ASAP! (BAC, C, MS, WFC, JPM)

All of this is bad news for financial stocks. Negative interest rates pinch net interest margins and put further pressure on already vulnerable Eurozone banks.

A more aggressive Fed rate hikes schedule threatens to destabilize global markets and rattle currency valuations.

As a result, a number of big bank stocks are rolling over to the downside, setting up some attractive short-side plays.

Big Bank Stocks to Sell: Bank of America Corp (BAC)

04715-bac-stockBank of America (BAC) shares have broken below their 50-day moving average for the first time since late December, ending a two-month consolidation pattern.

Watch for a likely drop to its February lows between $11 and $12.50. The bank will report results on April 14 before the bell. Analysts are looking for earnings of 24 cents per share on revenues of $20.6 billion.

Edge Pro subscribers are holding a position in the April $13 BAC puts.

Big Bank Stocks to Sell: Wells Fargo & Co (WFC)

04715-wfc-stockWells Fargo (WFC) shares are in the midst of a deepening three-week downtrend within the context of a long-term downtrend that started last summer. Shares have fallen below the $47-a-barrel level for the first time since February.

The company will report results on April 14 with analysts expecting earnings of 98 cents per share on revenues of $21.7 billion.

Big Bank Stocks to Sell: Citigroup Inc (C)

04715-c-stockCitigroup (C) shares have tumbled below their 50-day moving average to initiate its first major downtrend since December. The February low near $35 is now back in play. Shares have already dropped more than 31% from the high set last July.

The company will report results on April 15 before the bell with earnings of $1.13 per share expected on revenues of $17.7 billion.

Big Bank Stocks to Sell: JPMorgan Chase & Co. (JPM)

04715-jpm-stockJPMorgan Chase (JPM) shares have dropped down and out of a two-month consolidation range to end the uptrend out of the mid-February low. The turnaround was famously fueled by a move by CEO Jamie Dimon to buy nearly $27 million worth of stock.

The company will release results on April 13 before the bell. Analysts are looking for earnings of $1.26 per share on revenues of $23.4 billion.

Big Bank Stocks to Sell: Morgan Stanley (MS)

04715-ms-stockMorgan Stanley (MS) shares have dropped out of a three-month consolidation range with a violation of support near $24, resulting in the first downtrend initiation since December. This is within the context of a long-term downtrend pattern that started last July.

The company will report results on April 18 before the bell. Analysts are looking for earnings of 51 cents per share on revenues of $8.1 billion. Edge Pro subscribers are enjoying nearly a 120% gain on their April $24 MS puts recommended on March 30.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2016/04/big-bank-stocks-to-sell-financials/.

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