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This one caught my attention because it’s a perfect example of how sector alignment can strengthen a trade idea.

Our AI spotted a short opportunity in Texas Capital Bancshares (TCBI) at $80.35, and it dropped quickly to around $78.28. That’s a solid move, but what really makes this interesting is how it lined up with the regional banking sector.

Take a look at the KRE ETF, which tracks regional banks — it was also heading lower. That told me we weren’t just seeing isolated weakness in TCBI, but rather broad pressure across the group.

Now, TCBI reports earnings next week, and several regional banks that already reported haven’t exactly impressed the market. That likely set the tone for traders anticipating softer results across the sector. When you combine sector weakness with earnings anticipation, that’s a recipe for a clean short setup.

This trade highlights why it’s so important to trade with the trend and with the sector. You’re stacking the odds in your favor when both are moving in the same direction.

In this case, our AI nailed it — shorting TCBI while the KRE was confirming the move lower. That’s how you stay in sync with the market.