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JC Parets: Stay Away From Banking Stocks

JC Parets: Stay Away From Banking Stocks

  • JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
  • On Thursday, founder of Eagle Bay Capital, JC Parets, discussed a few topics, including his stance on the market, sentiment and how to play the bounce in stocks.
  • Below is a brief preview of the expert’s view of the European markets, especially on his take on financial stocks.
  • When asked if there are still problems in the European markets in the financials, Parets responded, “I think so… and I hate them!”

    The expert considers some of these companies – such as Deutsche Bank AG (USA) (NYSE: DB), Credit Suisse Group AG (ADR) (NYSE: CS), UBS Group AG (USA) (NYSE: UBS) – a “disaster,” both structurally and tactically.

    Related Link: JC Parets On Caterpillar: Be A Seller Of Strength

    Stay Away From Banks

    A look at Deutsche Bank shows that it’s trading “below a downward sloping 200-day moving average, with momentum in a bearish range,” he explained. At Credit Suisse, there’s a flat 200-day moving average, and “structurally, it’s a mess; it’s been going straight down for five years.”

    JC Parets then shared three points crucial to his strategy regarding banks:

    • 1. Eagle Bay is “not looking to put on longs in the market in general.”
    • 2. The aforementioned stocks in particular are some of the worst in the world.
    • 3. Investors should stay away not only from European banks, but also from American banks – even regional banks, which are even worse.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain


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