Top 5 Financial Stocks That Could Sink Your Portfolio In Q4

As of Nov. 16, 2023, five stocks in the financial sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here’s the latest list of major overbought players in this sector.

Velocity Financial, Inc. VEL

• Velocity Financial posted upbeat quarterly results. "Velocity’s differentiated business model and portfolio management strategies delivered another strong quarter for shareholders," said Chris Farrar, President and CEO." The company’s stock has a 52-week high of $18.05. .
• RSI Value: 71.78
• VEL Price Action: Shares of Velocity Financial fell 14.1% to close at $15.29 on Wednesday.

MoneyLion Inc. ML

• MoneyLion posted downbeat third-quarter sales. "MoneyLion had another record quarter in Q3 2023, demonstrating the strength and resilience of our business model," said Dee Choubey, MoneyLion’s co-founder and Chief Executive Officer. The company’s stock has a 52-week high of $35.36.
• RSI Value: 70.86
• ML Price Action: Shares of MoneyLion fell 7.6% to close at $32.07 on Wednesday.

Arrow Financial Corporation AROW

• Arrow Financial posted upbeat third-quarter earnings. Arrow President and CEO David S. DeMarco said, "This quarter, we continued to experience substantial loan growth with asset and deposit balances at or near record highs. We also continued our pattern of issuing cash and stock dividends, underscoring our dedication to creating value for our shareholders." The company has a 52-week high of $36.51.
• RSI Value: 76.52
• AROW Price Action: Shares of Arrow Financial fell 3.1% to close at $24.44 on Wednesday.

Northeast Community Bancorp, Inc. NECB

• NorthEast Community Bancorp reported better-than-expected third-quarter sales results. Kenneth A. Martinek, NorthEast Community Bancorp’s Chairman of the Board and Chief Executive Officer said, “We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio.” The company’s 52-week high is $17.31.
• RSI Value: 73.42
• NECB Price Action: Shares of Northeast Community Bancorp fell 2.5% to close at $16.88 on Wednesday.

Camden National Corporation CAC

• Camden National posted downbeat third-quarter results. The continued strength of our capital and operating earnings allowed us to execute an investment restructure strategy that repositions us for the future, while still reporting positive quarterly earnings," said Gregory A. Dufour, President and Chief Executive Officer. The company has a 52-week high of $43.88.
• RSI Value: 74.06
• CAC Price Action: Shares of Camden National fell 1.8% to settle at $34.61 on Wednesday.

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