The_Unwind

Financials Bearishly Diverging At S+P All Time High

Short
TVC:SPX   S&P 500 Index
Financial stocks have historically lead bull markets.

Yet today, as the S+P 500 was making yet another all time closing high,
on a 5 % jump in the Consumer Price Index
the XLF Financial ETF made up of the largest capital banks in the US,
was reversing sharply, and closing on it's lows today.

Why ?

Well the US 10 Year Bond, dropped another 4 Basis points to 1.44 %,
and has dropped from 1.75 % High this spring , an 18 % almost crash in yield in a few months
just as the cost of living has been rising sharply in 2021

Banks make big money when rates are rising, not falling.
This is setting up a major bearish divergence in the stock market.
Bank stocks are now falling.

The bond market is telling you there is a "flight to quality"
with big money now pouring into US Treasuries.

Pay attention to this bearish financial divergence.
It is material.
There are dark clouds brewing on the US financial horizon.

THE_UNWIND
6/10/21
Woods Of Connecticut

Comments

we need a correction soon, markets are wayyyyy overvalued relative to GDP
Reply
I wonder where they will invest their money if markets going to crash?
Emerging markets? Because Brazil is in a very strong rally never seen before.
Lot of money coming in from foreign investors.
Reply
lololol! it's not going down! Fed will kep buying! Give up my friend!
May be next year.
Reply
TheBadMrFox leonardoauer
@leonardoauer, the fed ? They don't buy shit
Reply
TheBadMrFox leonardoauer
@leonardoauer, I mean the markets done. There's laws to this.
Reply
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