Tag Archives for " BAC "

financial

Financial Sector | Where There’s Smoke…

You know the old saying, where there’s smoke there’s fire.  The Financial ETF (XLF) just lost 9.7% in the last 10 trading days. So when it comes to the financial sector of the stock market what is the smoke?

The smoke for financials is a higher than normal rise in certain interest rates that might signal financial distress. Recently the spread between the London Interbank Offered Rate (LIBOR) and Overnight Indexed Swap Rate (OIS) has been rising rapidly and now stands at the highest level since the Financial Crisis. Continue reading

irrational exuberance

Irrational Exuberance…2017 Style

So Snapchat, now known as Snap, Inc. (SNAP) went public last week and it was a feeding frenzy.  Shares priced at $17 started trading at $24 and closed that first day at $24.48 with 217 million shares traded.  Friday they piled on an additional $2.61 closing at $27.09.  

I believe at one point the total estimated value of Snap was well over $40 billion.  Incredible for a company that lost $500 million last year.  And they don’t have any competition…right? We’ll see.

But their timing is perfect. Coming public at a time when bullish readings on the stock market are at 30 year highs…at least the Investor’s Intelligence Advisors Survey last week was.  With the stock market at all-time highs and consumer confidence at the highest since 2000 it’s “party on Wayne”! Continue reading

How Could We Be This Wrong?

uncertaintyThe jobs report came out Friday morning and all the analysts on CNBC and elsewhere were stunned. Most were expecting jobs growth of 160,000 for May. Instead we got 38,000!!!

And March and April were revised down also. As Jim Cramer said on CNBC, ‘we track all this data, how could we be this wrong?’  I think that pretty much sums it up.

Then all the financial stocks got whacked. The dollar dropped. Gold, Yen and long-term bonds popped to the upside. The stock market really took a hit the first hour but clawed its way back, still down on the day.

The video below is an abbreviated version of what I provide my Insider Members. In today’s video, in addition to the market I look at 3 financial stocks…Bank of America (BAC), Citigroup (C) and JPMorgan Chase (JPM).

Financials Start the Rollover

FinancialsThe financials had the biggest move of all the industry sectors that dropped last week, down 2.9%. Is this the end of their rally? They do look like they are starting to roll over.

The video below is a very condensed version of what I provide to my Insider Members in their Weekend Market Analysis.

In this video I review this week’s market action by looking at the S&P 500 (SPX), NYSE Composite (NYA) and Russell 2000. I then review the semiconductors (SMH), homebuilders (XHB) and the financials (XLF). Three stocks in focus are:

Still Overbought

Still overboughtOn Thursday the DJIA and S&P 500 (SPX) put in reversal bars. We got the follow-thru on Friday with the DJIA down nearly 300 points and the SPX down 32 points…the biggest down day since Sept. 1st. Now we have a similar reversal bar for the week.

The market had reached an overbought extreme with the 3 week counter-trend move. Based on Elliott Wave count, Put/Call extremes and other momentum indicators there is still more selling to come.

I go into all of this in the detailed Weekend Market Analysis Video below. I also review the weekly charts of American Express (AXP), Bank of America (BAC) and Goldman Sachs (GS). Continue reading

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