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Northeast Regional Bank Stocks Expected To Be Higher After 5 of Top 6 Correlated Stocks Fire Buy Signal.


Published on 2009-07-13 15:59:57, Last Modified on 2010-12-22 14:29:22 - WOPRAI
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July 14, 2009 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the top 6 most highly correlated Northeast Regional Bank stocks and 83% of them have fired a buy signal as of July 13, 2009. State Street (NYSE: STT), State Bancorp (NASDAQ: STBC), Independent Bank Corp (NASDAQ: INDB), Washington Trust (NASDAQ: WASH) and Sun Bancorp (NASDAQ: SNBC) are all expected to be higher as 5 of the top 6 stocks in the sector have fired a buy signal. Group rotation is a phenomenon where institutions exert buying or selling pressure in an industry group, pushing prices of the group higher or higher relative to the general market. An industry can often lead or lag the market, and the most highly correlated stocks (mirror closest to the overall move in that group) usually move in unison. The technology used to make these predictions is available for a low monthly fee at http://www.squeezetrigger.com/services/strat/mh.php . The chart below displays the correlation, beta and relative strength of the top 6 most highly correlated stocks in the highlighted industry group:

Name Symbol Correlation Beta RelStr Sector

STATE STREET CORP STT 0.93 1.31 0.97 Regional - Northeast Banks

REGIONAL BANK HOLDRS TR RKH 0.91 0.96 0.98 Regional - Northeast Banks

STATE BANCORP INC STBC 0.82 1.14 1.09 Regional - Northeast Banks

INDEPENDENT BANK CORP INDB 0.81 0.81 1.02 Regional - Northeast Banks

WASHINGTON TRUST WASH 0.8 0.77 1 Regional - Northeast Banks

SUN BANCORP INC SNBC 0.79 0.44 0.99 Regional - Northeast Banks

We automatically calculate correlation to help find the stocks that most closely match their groupa�s movement and generate powerful group consensus trading signals to profit from the herd mentality. When multiple stocks in a group turn at the same time and the rotation of that group is confirmed, an explosive move typically occurs. Correlation measures the tendency for a symbol to move in unison with the group, beta measures the amount the symbol is expected to move relative to the group and relative strength looks back at the recent past to show how the stock has been moving relative to the group.

The chart below looks at average seasonal moves (Seasonality) over the past 5 years of the stocks mentioned above and predicts an expected move up or down based on the odds (# of times it has happened in the past). Northeast Regional Bank stocks as a group have been up an average of +0.5 in July and +0.3% in August.

CLICK TO VIEW GRAPH:

State Street Corporation (NYSE: STT), through its subsidiaries, provides a range of products and services for the institutional investors worldwide. It operates in two divisions, Investment Servicing and Investment Management. These divisions provide a range of products and services, which include mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments and other investment pools, and investment managers. The Investment Servicing division offers a range of services, including custody, product- and participant-level accounting, daily pricing, and administration; master trust and master custody; recordkeeping; shareholder comprising mutual fund and collective investment fund shareholder accounting; foreign exchange, brokerage, and other trading; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and hedge fund manager operations outsourcing; and performance, risk, and compliance analytics. The Investment Management division provides a range of services for managing financial assets, such as investment research services and investment management, including the passive and active U.S. and the non-U.S. equity and fixed-income strategies; and other related services, such as securities finance. The company was founded in 1832 and is headquartered in Boston, Massachusetts.

State Bancorp, Inc. (NASDAQ: STBC) operates as the holding company for State Bank of Long Island that provides general banking products and services, focusing on the small to mid-sized business, municipal, and consumer markets in Long Island and New York City. The companya�s deposit products include interest-bearing transaction accounts, non-interest-bearing demand deposits, checking accounts, NOW accounts, money market accounts, savings accounts, certificates of deposit, individual retirement accounts, and other time deposits. It also offers commercial loans, construction loans, commercial mortgage loans, consumer loans, small business lines of credit, and residential mortgage and home equity lines of credit products. In addition, State Bancorp provides cash management services, telephone and online banking services, and access to annuity products and mutual funds. The company serves commercial real estate owners and developers, small to middle market businesses, professional service firms, municipalities, and consumers. As of December 31, 2008, it operated 17 branches in Nassau, Suffolk, Queens, and Manhattan. The company was founded in 1966 and is headquartered in Jericho, New York.

Independent Bank Corp. (NASDAQ: INDB) operates as the bank holding company for Rockland Trust Company that provides commercial banking, retail banking, and wealth management services, as well as the sale of retail investments and insurance products in Massachusetts. It offers a range of deposit products, including demand deposits, interest checking, money market accounts, savings accounts, and time certificates of deposit. The companya�s loan portfolio comprises commercial loans, which include loans to businesses for working capital and other business-related purposes, and floor plan financing; small business loans, which primarily consist of loans to businesses with commercial credit needs; and consumer loans that primarily comprises installment loans, home equity loans and lines, automobile loans, and overdraft protection. It also provides real estate loans, which include commercial mortgages that are secured by non-residential properties; residential mortgages that are secured primarily by owner-occupied residences; and mortgages for the construction of commercial and residential properties. In addition, the company provides investment management and trust services to individuals, small businesses, and charitable institutions. As of December 31, 2008, it operated 58 full service and 3 limited service retail branches, 10 commercial banking centers, 4 investment management offices, and 5 mortgage lending centers in the southeastern Massachusetts; and Lincoln, Rhode Island. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

Washington Trust Bancorp, Inc. (NASDAQ: WASH) operates as the holding company for The Washington Trust Company that offers a range of banking and related financial services to individuals and businesses in the United States. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit products, including commercial and consumer demand, savings, time, negotiable order of withdrawal, and money market deposits; retirement accounts; and certificates of deposit. Its portfolio of loans includes residential mortgages, commercial real estate loans, residential loans, reverse mortgages, commercial loans, construction loans, home equity lines of credit, home equity loans, and consumer installment loans. This segment also offers automated teller machine (ATM), merchant credit card processing, telephone banking, Internet banking, cash management, remote deposit capture, and safe deposit boxes services. The Wealth Management Services segment provides asset management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; investment management, advisory, and financial planning services; and corporate/institutional trust services, such as services as trustee for pension and profit sharing plans. As of December 31, 2008, Washington Trust Bancorp operated 17 branch offices in Rhode Island, Massachusetts, and southeastern Connecticut. The company was founded in 1800 and is headquartered in Westerly, Rhode Island.

Sun Bancorp, Inc. (NASDAQ: SNBC) operates as the bank holding company for Sun National Bank that provides a range of commercial and retail banking products and services in the United States. The company accepts various deposit products, including checking accounts, savings accounts, money market deposits, certificates of deposit, and individual retirement accounts, as well as business checking accounts. Its lending services include term loans and lines of credit, mortgage loans, construction loans, and equipment leasing for businesses; and residential mortgage and construction loans, second mortgage loans, home equity loans, and installment loans for consumers. The company also offers cash management services, such as electronic banking, sweep accounts, lockbox services, Internet banking, remote deposit, and controlled disbursement services; and mutual funds, securities brokerage, annuities, and investment advisory services through a third-party arrangement. As of December 31, 2008, it operated in 70 locations, including 62 community banking centers in New Jersey; and 5 commercial lending centers, including 1 located in Wilmington, Delaware. The company was founded in 1985 and is headquartered in Vineland, New Jersey.

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