Within the past week, the regional bank ETF symbol KBE broken its major trendline. This was positive news for the bears of the world (AKA me, Baby Bear, TNR, and four other people). This positive news has gone super-positive, as the H&S topping pattern of KBE is now complete. Banks are screwed and tattooed. It couldn’t happen to a nicer group.
I would also point out this important fact: what is the one thing that banks love? High interest rates! That’s where their profits come from. And what have interest rates done?
UP, UP, UP! My point is: if banks are sucking donkey in an environment of roaring interest rates, God help them (well, actually, don’t………..) if bonds strengthen and rates weaken.