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A trader buying bank stocks for dividends?
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Which bank did you get? Thanks!
Damn…you got FRC below 10$?. Serves me right for not waking up early. 
All those banks listed, SCHW,FRC,USB,ALLY,NYCB, NLY are my purchases
I try to allocate a portion of my investment dividend buy and hold so that I get cash like rental income and exceed returns over indexes. Still I may have some cash for trading.
Yes, I ran a check. If I buy these stocks now and hold, it will exceed SPY, QQQ return when market reaches ATH.
For example, current NYCB is lowest priced in the last 20 years, payout is 53% and they have nice income potential. Manch posted a link which gave me some idea how to calculate. Even with 5.5% interest rate, they will make good income (as they had YOY -0.11% on their margin). The dividend works out 10.5% at 53% payout ratio.
NLY has higher risky element, but again MBS related, but I know the company last 15 years and one of the biggest REITs and the price is too low. It can still drop further, I will DCA further.
It was DCA from $28, $25, $20, $19 and $18. I had $15 and $10, but did not reach that level. FRC did the right thing to have more liquidity, but panic selling was there.
If it dips again, below $20, I will buy more in next 7-10 days as I expect more volatility in the market until FED meeting.
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I do not know about AAPL, but market turned bullish from yesterday morning. However, volatility will make ups & downs and temporary pull back.
Dip the market when extreme fear is there. Lucky, I had Sat & Sun to analyze nicely to decide what to buy.
This is a rare event for Bank stocks, KRE (long term swing) ETF dropped to $41 to the lowest after Mar 2020 (which was $27) and the second best DPST (short term 3x swing) $7 (now $9.86 almost 40% up) in 2 days. Even though I missed buying lowest bottom, purchased bulk ETFs.
Moody’s very delayed downgrade on US bank is a waste and does not work anymore!
BTW: This DIP rotation was Bank shares (KRE & DPST) and last time DIP was Chip set (After that SOXL jumped 97%).
It does not mean I am completely bullish, but short term 1-4 months bullish as first leg of correction comes to an end and market IMO can not cross 4440 (SPX) above.
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Good I have 30% in stocks, 70 cash position, will wait for further dip (any time on or before FED meeting) as I expect market volatility continue until FED says “NO RATE HIKE!”
Market looks like forcing FED to stop. let us see !
This is similar to year 2020, Market started dropping from Jan 2020 and ended Mar 23, 2020 one day after FED meeting
All Guess work, everything can go wrong!
Easy to challenge JC! I sold 100% TQQQ/SOXL some profitably and started DCAing SQQQ today !
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I do not want to sell some of the bank stocks that I purchased deep low. Today, when FRC came to $20 and below, started DCAing. Same with PACW and NYCB…etc. Still do not know whether it is right or wrong, but time will tell me.
I keep KRE and DPST for trading purpose, esp now along with TQQQ/SOXL.
I mainly DCA SQQQ to cover the bank stocks holding as a hedge !
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I only hold the FRC preferreds. Sold common for 1% loss. Don’t have diamond hands to hold the common with the volatility.
True, tough to manage the volatility, but it is the price that matters. For example, I started DCAing DPST $8 or below, but when it jumped to today 9.50, I just sold everything.
With my site already giving SPX sell at (S4:3960.28) and tomorrow QUAD witching, followed by FED decision on Wednesday, market won’t stand upside until FED meeting!
For these, I do not need to monitor market, but my system will send text messages to me when market goes to extreme ends.
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AAII Sentiment Survey:
Bullish: At a 6-month low; 34th lowest reading since our weekly survey started in 1987
Bearish: At a 4-month high, last higher on December 22, 2022
AI and crypto stocks are doing well today.
Eg. NVDA COIN GOOG MSFT
The Fed injects over 300B into the banking system last week. Swiss Central Bank loaned CS 50B. China also just cut reserves requirement.
Global liquidity is spiking up.
Good or Bad, Holding NYCB shares which is taking over Signature Bank assets (except digital assets).
I still have GTC purchases if NYCB goes down below my previous price !