An Irrational Financial Stock to Sell

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Raymond James Financial Inc. (NYSE: RJF ) — This financial services company with offices in the United States and Canada, made a strong move to new highs in March, but it has outpaced its peers and S&P has concerns regarding its exposure to residential and commercial mortgages and corporate loans. Insiders have been very heavy sellers. In the past three months, there have been 14 sales versus just three purchases. Technically, note the break in February to an “irrational exuberance” high, and then the fall in April under the 50-day moving average following a double-top (which is marked by two black x’s on the chart). RJF’s chart appears to be a solid example of an overbought stock that has risen to an irrational level. Holders of the stock should sell RJF at the market. The target for a short sale is $32. If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .