SPDR KBW Regional Banking ETF (NYSE: KRE ) This exchange-traded fund (ETF)
replicates the performance of the U.S. regional banking sector. Since February,
the regional banks have been in a sharp decline as they mirrored the economic
outlook of theUnited States, the poor real estate market, and European contagion
that has had an impact on the larger banks. But it appears that because of their
limited exposure and recent improvement in many sections of theUnited States,
the sector has come back to life. Yesterday, KRE broke its long-term downtrend
by closing above its bearish resistance line and 200-day moving average. Thus,
its long-term trend is now up and its 12-month target is $30-plus. Traders
should also consider profitable banks for active trades. Next week, I will
review several favorites including BB&T (NYSE: BBT ), SunTrust (NYSE: STI ),
Fifth Third Bancorp (NASDAQ: FITB ) and KeyCorp (NYSE: KEY ). Click to Enlarge
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