Regional banks have been an absolute dog as of late. They lag almost everything, other than energy. This sector has shown some strength since the “Tech Wreck”. So why do we focus on this group? Well it is part of a larger story…. interest rates. Let’s hop on the chart.
So here we have the charts of KRE. We have seen a downward sloping trendline that was intact...
... for a 1.49 credit.
Notes: With its current yield of 3.66%, looking to pick up some shares lower or just keep the premium. Background implied at 44.9% with an ROC of 2.50% at max as a function of notional risk, 9.71% annualized.
Expecting something like this to play out with KRE (regional banks). So many headwinds for banks going forward, even if we avoid any further Corona problems (big if), we are expected to be in a zero or negative rate environment for years to come. Just look at what happened to Japanese and European banks under those conditions for long timeframes. It's not...
Here is my update of the KRE chart.
I think we are heading back to the 32,67$ area and if we won't break the uptrend channel, from that point we will go up and will retest 37 and possibly 40 at the top of this daily support channel.
As you can see, we are still in the uptrend on the D chart. The RSI is on 46%, there is no volume fading, and the indicator shows...
Here is my new idea but, before starting talking about technical Let's share your LOVE by giving me LIKES and COMMENTS. Thanks in advance.
the 1hr chart
On the RSI : 3 times tried to break the 57,27 level but seems like a strong resistance, and always went back to 54,10 ( strong support) level.
What signs show that we are in the uptrend:
- We have a Doji...
Yields are looking ready to resolve lower - global yields tell a different story though, specifically the German and Japanese 10Y Yield.
$TLT vs. $SPY also suggestive of Bond out-performance on the horizon