Seasonality Sell for $MS into May ($XLF, $KRE)

There is the potential for a nice selloff in MS (and ) after busting a parallel channel. The banks have been hit during virus.

On May 4 we received a rare 2 million single block trade on MS, which we have splashed and are testing now. We are dropping below. This is a very bearish signal for me.

MAY 6 2020, 10:13 AM EDT

VOL (K) | PRICE ($) | 🔼
--------.-----------.----------
📈
--------.--(MAY04)--.----------
2,000 | 37.62 | 💔 -0.65%

Note

We are dropping below the block, now 0.6% below indicated by the snapshot report above.

Note

MS (and other banks) typically have a selloff somewhere after the April FOMC and into May (sell in May). This shows a big drop in the next few days.

Note

Barely missed the 38.2% retracement this week. Maybe this trade gets a second wind but it is that time of year where it will not be easy. Probably the best option would have been OTM credit call spreads sold.

mortdiggiddy

Find the edge.

Website: daily-edge.com
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mortdiggiddy

Find the edge.

Website: daily-edge.com
Twitter: twitter.com/dailyEdgeGroup
Youtube: youtube.com/c/TheDailyEdgeTradingGroup
Telegram: t.me/mortdiggiddy
Paypal: paypal.me/mortdiggiddy

Also on: