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.
Follow me to get fresh pair trading ideas!
Applying some of the most popular indicators on the pair XLF/KRE shows an interesting pattern. While KRE has been clearly outperforming XLF since December 2018, a trend reversal seems to occur. XLF might catch up in the coming days and weeks.
in the current environment banks are leading the rally, but volatility is likely to return.but, volatility can remain low for long periods of time.
in this trade i see certainty in either direction as a positive. this trade captures either delta change or volatility expansion in the main leading sector.
in this trade we take a russell proxy KRE and SP 500 proxy...
mnuchin , powell, and trump have a bonding moment over a few hamberders one night. steve asks is liquidity secure? powell says we have a ton of excess liquidity, regional banks are unfairly hurt by rules to tame more sensitive banks. trump we need a rule change to allow a little stimulus juice to help industry. why not change rules on excess reserve requirements...