Red-hot chipmaker AMD pops on surprise Q2 profit >>> READ MORE

3 Bank Stocks That Can Bank You Free Profits

Go long with confidence in these three big-money financial plays

    View All  

Donald Trump winning the 2016 U.S. election lit a fire under bank stocks, the likes of which we have rarely seen.

The thesis was doubly effective — half from the prospects of higher interest rates, and the other half from President Trump’s promise to greatly reduce regulation. Equity investors projected that bank profits would be unshackled, and that triggered a buying frenzy unmatched by any other since the financial debacle nearly a decade ago.

However, Wall Street usually overshoots on big stock moves, and this case was no exception. But while the financials have retreated from their recent highs, they’ve also consolidated well around current levels. This could create a solid base from which to mount another wave higher.

Furthermore, the macro picture is ambiguous enough that shorting it without a new cause would be dangerous. This greatly reduces the likelihood of sustained dips.

Some charts among the big bank stocks are looking technically frisky. So today, I want to share a few setups — two specific plays, and one that will cast a wider net. These are three bullish trades that will allow you to capture any upside from financial stocks, and with room for error!

Next Page

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC