Banks are raising the reserve lvl in anticipation of the rising loan default. Facing weaker loan demand, banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories. In addition, banks also tightened their standards and terms on commercial and industrial (C&I) loans to firms of all sizes.
Here's a chart of the Nasdaq Banking index showing that things could really be hanging in the balance at the moment. On the one hand this count suggests we may be in the final C wave of a long, flat correction that began back in 2007. On the other hand, if the said correction in fact completed back in 2009 then we could perhaps expect the bullish alternative and...
As we contemplate the convergence of long-term US rates with that of Europe and Japan as well as the Japanification of the global economy, it is useful think about the potential impact on banks. Yes, low rates are not good for banks and as we have seen in Japan, perpetual low rates does not equate to an increase in velocity of money. That chapter in financial...
BKX (Nasdaq bank index) has just broken above the Lower High trend line (dashed lines) of the 1W bearish (pull back) leg within the greater pattern of the multi year Channel Up since 2012. The technicals have turned bullish on 1W (RSI = 59.797, MACD = 1.140, Highs/Lows = 5.1079) and even the RSI is on identical levels with the last time a similar break out took...
This chart shows the ratio of XAUUSD vs BKX bank index
Gold is typically considered a secure investment in times of economic uncertainty
The KBW Bank Index (ticker BKX) tracks the stocks of 24 major banking companies since the early 90s.
This index serves as a benchmark of the banking sector.
During the Great Financial Crisis of 2007–08 questions regarding...
Hey traders,
I won't comment on this one and will just let the data and idea speak for itself. IF this happens its going to be a very painful period for many on the lower-bound of income generation who rely on credit creation to make ends meet. Please consider philanthropic endeavours from any capital made on this trade. Godspeed.
***This is not investment...
The selloff has been fairly steep in this index as we now trading below the descending channel. We are very oversold here, so let's look for a re-entry back into the channel and see if we can hit channel resistance before we get another consolidating sell-off.
Here's the weekly snapshot:
We can see we are close to the...
I am not one to like the earnings reaction at all with the banks but there is signs prices are trying to move hire. Now we had an incredible earnings week, so this little up tick could be deceiving. I would of muck preferred a squeeze off support here. Since, we don't see that, very difficult to call a long. This is also a start for a new month. My market...
