As mentioned before (Dec 6) US Banks are in trouble Banks profits shrinking Today I will say the same for EU financials. If you are a financial bull in Europe you don't want to see this break!
Bank on Dec 20, 2021, I first warned about EU banks It went against about 12% before it collapsed almost 30% from the classic double top. I was warning that the yield curve was in the death dive and this was bad JuJu! I also warned about US Banking XLF on Dec 6, 2021 Since then all charts have confirmed my analysis like Magic! Unfortunately, few saw the...
European banks (DB, BCS, LYG) are getting crushed lately... here's where I'll take a shot at a long play on DB, but on tight leash!
Banks do better in a high interest rate environment. The US central bank is going to be reducing its balance sheet by selling US bonds. As the yield curve steepens, interest rates rise. If reflation holds (DXY falls, interests rates rise AND it doesn't crash the market), banks could do very well. Watch for upward resistance here. The european banks are up...
I think we can get a retracement in the financial sector, and Europe is in worse shape than the US in general. It wouldn't surprise me to have some negative news pop out, surrounding Italy's referendum, Deutsche Bank, Italian Banks, UK banks, Brexit, etc. Quite a few potential catalysts for volatility, so, if we see this ETF break the linear regression channel...