Right, a bit of a congested chart...
In white, we have $XLF, purple, the US unemployment rate, orange is the European bank index and in yellow, we have the effective Fed Funds rate (US interest rate).
Recent rhetoric from the Fed has been pretty dovish, and we have had a pause in hiking rates, with there likely to be absolutely no hike this year.
If an economy...
MS should easily beat earnings since it's a busy IPO season and they are one of the major banks to underwrite the coming public offerings. I know that they are underwriting Uber's coming IPO.
Feel free to provide constructive critique. I have loaded up on May $45-$46 call options. I am also holding GS call options.
I've added the ichokucloud fibonacci to this chart. Looks like my previous analysis was correct, broke out from the base established over the past 2 months. Earnings Monday morning should make this pop along the new trend line.
Hey guys, quick disclaimer; I am a novice technician but I'm here to learn!
I'm playing some $210 call options for Goldman Sachs earnings.
Goldman to me, has more upside potential in the financials vs. JPM or BAC. And with the onslaught of IPOs it should be a forgone conclusion their revenue/earnings should be boosted in that environment. The SPY appears to...
The XLF is currently forming what appears to be a complex inverse head and shoulders pattern. As it sits right now, price is holding between the 50 and 200 day moving averages (50 day acting as support, 200 day acting as resistance) and we could be setting up for a golden cross (50 MA crossing the 200 MA) into an eventual retest of the neckline of this complex...
So, if you look at XLF, Never fully recover since the financial crisis, so the big jump in Yields, since 2017 trump presidence is back where all rally started, the weird thing is that correlation bewteen yields, and bank stocks was right in dicember and these 5 month rally, in anticipation of earning is not price in, earning cuts, honestly did you know that banks,...
Open short position at $106.59
Stop loss at $107
Take profit at $104.76
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Financial sector is one of the largest components of S&P 500. On Friday it retested its important resistance and ended up as a doji candle. If it starts the pullback to the mean, which is confluence with 20 EMA then it will drag the index down as well. Watch financials to confirm your ideas about SPY trading.
Low rate environment and flat yield curve have created an unprofitable environment for banks and financials.
In addition the recently dovish fed in a still tight labor market will likely increase inflation and marginal costs weighing on financial's and corporate companies' alike profit margins. These factors will make earnings and guidance difficult this coming...
Soem days ago I highlighted an interesting chart pattern related to the pair XLF/KRE, mentioning that AMEX:XLF could soon outperform AMEX:KRE. Well it turned out very well.
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