JC Parets On Why To 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) DB, Credit Suisse Group AG (ADR) CS, UBS Group AG (USA) UBS – a “disaster,” both structurally and tactically.

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

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