JC Parets: Stay Away From Banking 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.

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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