Since I don’t want to jinx anything, I’ll put up a “one day does not a bear market break” post. Unless XLF breaks beneath its horizontal breakout level, bears are still very much vulnerable and must remain on the defensive.
MTG announced a pretty wild earnings surprise today and this beaten up and “left for dead” stock ran out of the gate by 10%.
It’s a name that’s been mentioned by our new Slope friend Jesse and some of the talking heads on CNBC have also touted it of late. What’s all the fuss about? I must say, I have no clue, but it is a leveraged play on the housing recovery. From all time highs above 70 five years ago to a low of 66 cents, you can file this one in the Zombieland files (a la AIG, C, BAC). (more…)
If you want a breathtaking view of how much financial stocks have strengthened, look no further than the chart of FAS below, which is the triple-bullish ETF. The interesting thing is that one didn’t have to be lucky enough to buy it in depths of the financial crisis for a bargain price; it was actually very depressed in October 2011, only a year and a half ago. It’s up 345% since then. I won’t show its opposite here, symbol FAZ, but it basically looks like a ski slope ever since its inception. (more…)
I find the ETF for financial stocks pretty interesting: long-term, the uptrend is quite clear, but in recent weeks, we’ve definitely been banging out a series of lower highs and lower lows. I guess the question is whether or not this designates a trend change or a continuation pattern. I’m ambivalent enough about it to simply move on to other items; there are plenty of other fish to fry. But I at least wanted to bring this to your attention, since your eyes might be better than mine! (more…)
As I was charting long-term Treasury yields in NFTRH 241, I ran a chart of the ratio between the banks and the S&P 500 and what do you know? The ratio had broken out to the upside right along with long-term interest rates. ‘Hmmm…’ said I, ‘maybe this is relevant to the analysis.’
Excerpted from NFTRH 241: (more…)
Fannie Mae was trading at nearly $70 in early 2004 and, four years later, cratered to eighteen cents. What’s most remarkable to me is that there is a gap between trading that ended on September 5 2008 and the following Monday, September 8. That’s when the financial crisis popped from 3rd gear immediately to 5th, and it never looked back………until this week. (more…)
Feel like kicking yourself over an obscenely-profitable missed opportunity? Of course you do! This is breathtaking – - a gain of about one-thousand percent in just over two months time: (more…)