Banks have been on the move
Not a recommendation and not quite to long entry level..
Top 10 Holdings
First Republic Bank
SVB Financial Group
JPMorgan Chase & Co
Bank of America Corp
PennyMac Financial Services Inc Class A
Bank of New York Mellon Corp
It ought to be known by everyone that it is necessary in certain recessions for dead cat bounces and over a typical 5 quarter economic cycle down, it is not uncommon for 1 or 2 of those quarters to be bullish. I suspect that the strength around all the discounted earnings from August is mostly baked in now.
The 60 day correlation between KBE and TLT is currently -.66, which means as TLT goes up banks will generally go down.
As people overall are getting more comfortable living with covid and the businesses slowly opening up this should really remove a lot of negative pressure on the banks.
KBE has formed a nice base / consolidation area for the last 3 months...
WHY KBE? KBE - tracks an equal-weighted index of US banking stocks. Meaning, The big boys (Banks) and the smaller ones gets an equal -weight.
With small cap ( IWM ) leading the major index last week and the finance sector ( XLF ) being under the radar with good earnings, we might c a major breakout 2 the whole finance sector.
In the technical point of view'...
Updates coming from the previous "Banks Look Cheap vs Utilities" chart. For those who don't remember here are the flows we have been tracking:
Now it is clear US 10-year Yields are starting to withdraw again, although this time Banks vs Utilities are less affected. I have been...
If you´ve been looking around the U.S. banking sector you got to be depressed. Not one decent long setup. Sadly is that many of U.S. banks stocks are at a great discount at the moment. However they can get even much cheaper! So insted of going short in the majory of individual bank stocks i picked the KBE ETF. Could be XLF also. And the weekly TF presents a great...
By all indication the equal weighted banking KBE ETF if a good investment right now. There is a change in sentiment towards the sector and is seen as a safe place to invest before volatility returns to the equity markets.
Technical indicators on the chart are all positive and give us confidence to invest.
The KBE ETF, which tracks an equal-weighted index of U.S. banking stocks, has been rising on a very steady 1M Channel Up since the 2008 financial crisis and has recently rebounded on the latest Higher Low (RSI = 50.776, MACD = 0.640, Highs/Lows = 0.0000). This presents a good buy opportunity on banking stocks, which are expected to outperform the market in the...