With banking stocks looking strong today and longer-term bullish price objectives compelling, here's a rundown of what supply/demand says about the components of the S&P Banks Index (BIX.X) as told by Jeff Bailey. Subscribers can print out the following, then jump over to www.stockcharts.com and follow along with the point and figure charts there. This may also help you get a feel for how to "read" a point and figure chart.
Amsouth Bancorp (NYSE:ASO) $18.06: Shares of ASO currently indicated a bullish price objective of $23.50. Stock is trading just below bearish resistance, which resides at $18.50. Any bullish positions at current levels would be followed by a stop at $15, which would be a triple bottom sell signal.
*Bank of America Corp. (NYSE:BAC) $58.42: Shares of BAC currently trade in a long-term upward trend with bullish support just underneath at $53. Today, shares of BAC triggered a triple top buy signal at $58. Bullish price objective is $70. Stock is actionable here with a stop just under $53, which would be a break of upward trend and triple bottom sell signal.
Bank of New York (NYSE:BK) $55.15: Shares of BK broke above bearish resistance at $51 and current bullish price objective is $69. Stock recently triggered double top buy signal at $54. Bullish positions here would be followed with a stop at $49.
Bank One Corp. (NYSE:ONE) $38.84: Shares of BAC recently gave a double top buy signal at $38. Support looks firm at $33 as the stock has not traded $32 since November of 1999. Bullish price objective is $58. Stock looks actionable here with a stop at $32 which would be a quadruple bottom sell signal.
BB&T Corp (NYSE:BBT) $36.83: Shares of BBT currently have a bullish price objective of $46 and a trade at $39 would trigger a double top buy signal. Bullish support has been holding nicely since 1999. First sign of trouble would be a break below bullish support at $30.
Comerica Incorporated (NYSE:CMA) $57.86: Here's one for bullish traders to AVOID currently. Bearish price objective on the stock currently is $40 and the stock trades below bearish resistance, which is just ahead at $60. Sidelines for now.
Fifth Third Bancorp (NASDAQ:FITB) $59.20: Shares of FITB recently broke above bearish resistance at $55 and bullish price objective currently is $77. Stock looks strong and any pullback should find support at $55. A break above $62 is 52-week high.
**First Union (NYSE:FTU) $31.88: Shares of FTU are trying to battle above bearish resistance and look ready for a move to the upside after a severe downward trend dating back over a year. Stock looks good here with an obvious stop at $29, which would be a triple bottom sell signal and breaking of bullish support trend. A trade at $35 triggers a spread triple top buy signal. Current bullish price objective is $55.
**Fleetboston Fin. (FBF) $41.94: Shares of FBF recently broke bearish resistance at $41 and bullish support is forming at $37. Current bullish price objective is $52. Stock looks actionable here and a pullback to $38 would be ideal for full position with a trailing stop at $35.
PremierMarkets.com position strategy for size
* = Full position
PremierMarkets.com likes to manage its profiled portfolio by "weighting". I've "asterisked" some of the above stocks as we may profile some of these stocks listed above in the future. We reserve the right to profile 1/2 positions and then add to those with stock price performance or field position.
There are others, but out of time
I'm out of time here, but there are other stocks that make up the BIX.X. Their symbols are... (HBAN, JMP, KEY, MEL, NCC, NTRS, OK, PNC, RGBK, RNB, SORT, STT, SUB, STI, SNV, UPC, USB, WB and WFC) We'll get to those time permitting.
* = Full position