Some smaller banks are trading near book value. Hudson City Bank Corp. is a good example. Now would be a good time for investors to roll money into banks and out of the more frothy investments they are now enjoying. HCBK has support at the 30 week moving average, currently at $8.21. Notice the volume by price bars to the left. A major volume pocket exists above $8.75. If you’re not sure how to use volume by price, click here for an excellent tutorial by Twitter’s @gtotoy. I have found them to be quite useful. I may be early with my buy, but plan to buy in tranches to give myself to room for mistakes. Careful using stops with HCBK, notice the mini flash crash (long red candle) on March 1.
Disclaimer: If you buy HCBK, you could lose money.