| March 26th, 2021 Bullish Surge for KRE Dear Reader, Yesterday we looked at a Monthly Price Chart of ASML, noting that the stock’s 1- month price was above the 10-Month SMA which confirmed its uptrend. For today’s Trade of the Day we will be looking at the daily chart for SPDR S&P Regional Banking ETF symbol: KRE. Before breaking down KRE’s daily chart let’s first look at a summary of what the ETF tracks. This ETF seeks to provide investment results that correspond generally to the total return performance of an index derived from the regional banking segment of the U.S. banking industry through tracking the S&P Regional Banks Select Industry Index. Now, let’s begin to break down the Daily Price chart for KRE stock. Below is a Daily Price chart with the 50-Day EMA and 100-Day EMA for KRE. 
50-Day EMA and 100-Day EMA ‘Buy’ Signal The 50-Day Exponential Moving Average (EMA) and 100-Day EMA are moving average indicator lines that can provide buy and sell signals when used together. When the shorter-term 50-Day EMA crosses above or below the longer-term 100-Day EMA, this provides either a buy or sell signal depending on which direction the stock price is moving. - 50-Day EMA line Above 100-Day EMA = Price Uptrend = Buy signal
- 50 Day EMA line Below 100-Day EMA = Price Downtrend = Sell signal
When the 50-Day EMA (blue line) crosses above the 100-Day EMA (red line) this indicates that the stock’s buying pressure has begun to outweigh the selling pressure signaling a ‘buy’ signal. When the 50-Day EMA crosses below the 100-Day EMA this indicates that the selling pressure has begun to outweigh the buying pressure signaling a ‘sell’ signal. Buy the KRE ETF As the chart shows, in October 2020 the KRE 50-Day EMA, crossed above the 100-Day EMA. This crossover indicated the buying pressure for KRE stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish trend. Now, as you can see, the 50-Day EMA is still above the 100-Day EMA meaning the ‘buy’ signal is still in play. As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs and should be purchased. Our price target for KRE is $72.84 per share. 80.5% Profit Potential for KRE Option Now, since KRE ETF is currently in a 50/100-Day EMA uptrend, this means the stock’s bullish rally will likely continue. Let’s use the Hughes Optioneering calculator to look at the potential returns for an KRE call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat KRE price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following KRE option example, we used the 1% Rule to select the KRE option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. | 
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