Most investors continue to ignore what is developing with the smaller regional and community banks.
For some reason, they would prefer to continue to match wits with the large institutions and professional traders as to what Apple (NASDAQ: AAPL) or Facebook (NASDAQ: FB) shares might do over the short- to intermediate-term than to earn higher returns from lower-risk bank stocks that are facing a merger and consolidation wave that could last the next ten years.
The last time we saw a banking industry collapse, the smaller banks went up by a factor of ten over the next eight years or so.
The same situation is setting up today, and most have chosen to just ignore this powerful opportunity.
More than just technicals
One of the reasons is that you can't just glance at a chart and draw imaginary lines to determine buying and selling points for these stocks. Many of them are somewhat illiquid, and the technical patterns used to make guesses about price action simply do not work. Often there are simply not enough price points for the major technical indicators to give investors any information.
In fact, there is not going to be many information sources at all. You have to do the leg work yourself or find someone who specializes in these stocks to guide you. The talking heads on television won't be talking about small banks. The major web sites won't be talking about them, as the market capitalization of many of them is too small for them to bother mentioning.
The same is true of the major brokerage firms and research boutiques. Institutional interest is small so it is not worth paying someone to cover the sector. You cannot simply rely on tips and charts in this sector.
Seek out information
One can, however, find ...
