KBE is an unleveraged bank ETF which on the 60 minute chart is currently trending with a buy
signal from the machine learning algo indicator. Banks are reporting. Interest rate changes by
the fed are flat for the time being. The volume profile shows KBE took a dip to try to fall back
into the high-volume area and bounced. It has recovered from a VWAP band...
The SPDR S&P Bank ETF dropped sharply in March because of elevated Treasury yields. It’s been quieter recently with the 10-year marching to new long-term highs, but will that last?
The first pattern on today’s chart is the series of higher lows between early May and mid-August. KBE proceeded to make a lower high after breaking that trendline and has made lower...
Bank stocks have collapsed back in March, but don't forget that markets go from pessimism (fear) to optimism (greed) and vice versa. Looking at the KBE (Bank Sector ETF) chart, we can see a completed three-wave A-B-C corrective decline after a five-wave rally, which gives us a nice bullish setup formation. So, after reaching important 78.6% Fibonacci retracement...
KBE on the one-hour chart has been in a rising parallel channel for a month. It is now near the
the top of the channel having pivoted within the past few trading sessions. The MACD which is
no lag shows a line cross above the histogram while the RSI is topped out as it was on May 23rd
the most recent previous pivot downward. I see this as a short setup. The...
KBE's rate of change has declined in a dramatic fashion...Obviously...Judging by the .618 penetration and confirmation below, it looks like the decline is far from over...
DESCRIPTION: The chart above shows a relationship between KBE & SPX which is important for the current ongoing banking issues. KBE is a BANK ETF that reflects the overall performance of the banking sector in the United States. At the moment there is a major discrepancy between KBE & SPX value. Normally there is a consistent relationship between the banking sector...
KBE is in the middle of a beatdown with two of the biggest bank failures in history this week.
The share price action is reflecting overall distribution. The moving averages ( SMA 100 and SMA 200) are
parellel and not crossing. Today, the price action had a little pullback on the drop and perhaps an
early sign of reversal or at least the end of the trend into...
What is next?
doesn't take a Gypsy to see that happen, yet, takes balls to hold a position till that happen.
when you have unlimited supply of money at 0% - inflation is hard to avoid, then you raise interest to fight it,
for banks all long term fix rate securities they bought at 0% , now have much less market value, and sitting at loses, would they admit it...
Banks have been on the move
Not a recommendation and not quite to long entry level..
Top 10 Holdings
First Republic Bank
2.16%
SVB Financial Group
2.11%
JPMorgan Chase & Co
2.02%
Bank of America Corp
2.02%
Comerica Inc
2.02%
PennyMac Financial Services Inc Class A
2.01%
Sterling Bancorp
2.01%
Signature Bank
2.01%
Bank of New York Mellon Corp
2.01%
Citigroup Inc
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 concern, in the MT and LT, is the 2's 5's...
Banks will be under a lot of stress once the debtors start to default en masse.
Recovery from the crash was very weak, we are most likely going to revisit the lows, if not go even lower.
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 talking with clients recently around this space and there is broadly no concern....
