Bank Are the Worth the Risk

Well, only some of them are. 

If we are going to do a bank job together then it is worth clarifying a few points. Latin American banks are in much better shape technically than their U.S. counterparts, overall. And, certainly, European banks are far from healed, looking at BCS CS DB as still sporting devastating charts at risk of further wipeout. 

Nonetheless, the S&P is at new all-time highs, so keeping the idea pump flowing of actionable longs makes sense until bears can actually capitalize on some of these lingering concerns. 

Observing the daily chart of the ADR for Buenos Aires-based Grupo Financiero Galicia S.A., we can see price has been consolidating above all rising and properly-aligned moving averages, which is a claim just about all major U.S. banks cannot make, even with recent rallies. Also note the outperformance today, as the indices flirt with an actual red day at the moment. 

Moreover, we know the U.S. banks have earnings coming up in the next week or two, which should add additional risk to any trade right here, right now. 

So with the European banks still a disaster and elevated risk for U.S. banks, I am looking at those South American financial centers like GGAL. I will run through a few more for Members in my usual Midday Video, coming up.