Despite Weak 3Q Results, Major U.S. Banks/Brokers Acting Well — Signal Or Noise?

Stocks of major U.S. banks and brokers are behaving in a way that shorts are probably not very happy with.  Should they treat this as a signal or noise? The top six have reported September-quarter results, and it is a … Continued

One Major Problem Plaguing US Banks: Below-Average Loan-To-Deposit Ratio

posted in: Credit, Economy | 0

Through Wednesday, three major U.S. banks have reported third-quarter results, and if there is one common theme, it is the top line.  There is no growth. JPMorgan Chase (JPM) reported revenues of $23.5 billion, versus $25.1 billion last year.  For … Continued

VIX Likely Decides Who Wins Duel Between Transports And Financials

posted in: Derivatives, Equities, Technicals | 0

Bears point to action in transports to drive point home Bulls cite how financials are acting to prove why bears are wrong VIX remains pinned by 15, bullish (financials); VIX past 15, bearish (transports) Much ink has been spilled over … Continued

Buyback-induced breakouts — signal or noise?

posted in: Economy, Equities, Technicals | 0

GE stages massive breakout Friday on back of massive buyback announcement S&P 500 companies splurged $565 billion on share repurchases in 2014 As/when buybacks dry up, support zones become more vulnerable Before last week, GE shares had been on a … Continued

KBE on cusp of breakout, even as XLF lags

posted in: Economy, Equities, Technicals | 0

Different messages coming out of two financial ETFs – KBE vs. XLF KBE similar to KRE, regional bank ETF, while XLF is large cap-dominated C&I loans have been growing nicely, but so is inventories-to-sales ratio, muddying picture How did U.S. … Continued

Poor results from major U.S. banks prove XLF divergence from 10-2 spread misplaced

posted in: Credit, Equities, Technicals | 0

Major U.S. banks’ 4Q14 earnings results big disappointment Release of reserves built up during crisis years have been big tailwind Financials’ path of least resistance down medium-term, though oversold near-term Investors were genuinely disappointed last week as all four major … Continued

Amidst continued selling of rally attempts, bounce probably due

posted in: Derivatives, Equities, Technicals | 0

Bounces are normal within established downtrends 2015 starts out lousy; selling/shorting rallies ka-ching so far this year Should Draghi disappoint next week and U.S. stocks get sold, weakness probably gets bought For ardent believers of “as goes January, so goes … Continued