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Sell European Financials Now: Technician John Roque

Fin - Breakout - US

Long before Moody's fired a shot across the bow of 14 U.K. Banks, technical analyst John Roque of WJB Capital had been staying as far away from Europe's debt crisis and lenders as possible.

Even now, with the group at least 10% cheaper than when he last appeared on Breakout, Roque sees only darkness when it comes to the continent's financials, which haven't had much rest since the global debt crisis that started in 2008 and that led into the sovereign worries that have hit Greece, Spain, Portugal and other nations in the European Union.

"They are oversold, but if they can't rally that reflects weakness," he says.

If you feel like you've missed your chance to get out of them, Roque, a veteran technician who spent more than a decade at Natixis Bleichroeder before joining WJB in 2009, says you haven't.

"They have not bottomed yet," he says, adding that he is of the opinion that traders should do at least some selling when they can, not when they have to. And if you are trying to just squeak out another dollar or two, Roque says it's probably not worth it.

And his disdain isn't just limited to the British banks -- he has an avoid list that reads like a backpacker's itinerary.

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