Here is the S&P fund, symbol KBE, representing the bank sector. It is extraordinarily overbought.
Banks Ready to Reverse
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Lincoln Shot
Credit Cards Breakdown Imminent? (by MoneyMiser21)
The relentless march higher for credit card heavyweights Visa and MasterCard may be over (and take American Express with it), should PayPal prove to be the canary in the credit coal mine.
Why? Their charts look eerily similar, with Paypal potentially being the leader.
Goldman Loses Its Grip
Earnings season is upon us, and a couple of big investment banks reported this morning. JP Morgan, true to form, blew the doors off, and they’re hanging out at new lifetime highs. Goldman Sachs, on the other hand, has gapped down, and it seems to me the trendline it already broke is indicative of the breakdown that is transpiring.
Broker and Broker
This past week, one sector which took it on the chin was the brokerages. The reason is easy enough to understand. Two important revenue sources for them are (1) commissions and (2) interest on deposits. And yet (1) commissions are going to $0 across the board and (2) interest rates are plunging, and ultimately, I believe, will be negative. So here is the kind of catastrophe these companies are facing, with most of them down nearly 50% from their highs last year:
