XLF not exactly looking strongly bullish, but by no means is it bearish. I just took a squiz at my algo after US close and everything is looking reasonably safe. Gold has been the outstanding performer followed by Nasdaq stocks and mining. Traditional banks the weakest while fintech has been strong. Anyone who has been consistently shorting on a longer term basis will be badly hurting. Doesn't pay to be a contrarian atm. I remain bullish, Dow stocks were lagging but last couple of days they are accelerating.
Mick... xlf ain't goin' anywhere buddy. You are right in that its neither bearish or bullish... that's because most bank stocks are dirt cheap. There's a reason for that. Yeah, if we get a vaccine tomorrow they'll turn... but dude... banks make money lending to small businesses and average Joes. The next two months is anybody's guess. The 30 year fixed is at just over 3%. Interest rates are staying low for as far as the eye can see; that, and banks aren't going to loan money to people based on their $600/month unemployment checks. We'll get a pop when Congress extends the aid, the markets love news. The day that's announced and ES jumps 2%... I'd short the friggin farm. Because its not based on anything but news. There's real problems coming down the pike. The next two months are gonna be ugly. No schools, no jobs, no daycare, and possibly no aid. We're talking real people with real lives. There are stocks that will go up, but bank stocks aren't one of them. Pfff.... all those beautiful B&M primo real-estate buildings and all that over-head.... Dimon knows... there's a huge contraction coming. Things are gonna get ugly.
Yeah I know, its fun for us.... its the other 70% that aren't so lucky... and that's the back-bone of the economy. Either way, they can roll the printing presses... but the XLF is not going anywhere. B1 is not well versed in economics. Nor PANDEMICS for that matter. I shut him up on that one. Somebody's gotta do it.
Yup, not disagreeing with the sentiment of your post Vanzy me mate, but if banks hold up and don't collapse that's a bullish signal itself. Traditional banks are becoming old school, fintechs are taking their place and going gangbusters. Technology stocks continuing bullish. The major averages are slowly climbing. Real Estate is a scam industry, I'd be overjoyed to see this POS continually propped up and hyped up by marketeers industry go down the fuckin drain, so if RE fails, I'm happy. Unfortunately big banks are heavily invested in RE, so that's a problem. Too much money is invested in RE which stymies more productive growth in the economy.
I don't know what you call this, but here is 3 instances of 3 data points providing a low risk entry..the highlighted ovals show the 3rd test of trendline .. p.s. I'm tempted to get short tonight..