streetTRACKS KBW Regional Bank ETF Reaches for 50-Day Moving Average

streetTRACKS KBW Regional Bank ETF (KRE), an exchange-traded fund that holds approximately 50 regional bank stocks, on July 18, 2008 closed at $28.70 about one dollar below its 50-day moving average. KRE has jumped 25.88 percent from its July 15 close at $22.20.

On three previous occasions (see chart) KRE attempted to break its multi-year price downside, only to have the rallies fail.

Whether this rally is for real or just a relief bounce brought on by bargain hunters and traders covering their short positions is yet to be determined.

KRE paid a 16.4 cents quarterly dividend on June 20 for a 2.29 percent dividend yield.

The fund's top five holdings by market capitalization are: Hudson City Bancorp (HCBK), UnionBanCal (UB), Sovereign Bancorp (SOV) Synovus Financial (SNV) and Commerce Bancshares (CBSH).

The top five holdings by fund weight are First Commonwealth Financial (FCF), Provident Financial Services (PFS), Prosperity Bancshares (PRSP), Valley National Bancorp (VLY) and CVB Financial (CVBF).

I (RAH) own KRE.

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Posted July 20, 2008.