The banks sink into correction territory (-10% off their peaks) as the yield curve inverts. The regional banks, very susceptible to the yield curve, fall more than the large money center banks. The KRE, regional bank ETF, peaked at 55.8-ish and closed at a high at 55.4-ish in late July at the market top. A -10% correction is 50.22 and 49.86, respectively. Price remains at 49.28 in correction. A bear market will occur for the regional banks if a -20% drop off the top occurs which would be 44.64 and 44.32 price levels, respectively. KRE at 49.28 is a -11.7% loss off the late July top.
The KRE peaked at 64 in June 2018. KRE collapsed to sub 44, a -31% crash and more, to end the 2018 year, descending into a bear market (-20% off the top). KRE then rallied back to 57 a +30% pop returning into a bull market earlier this year. The regional's then roll back over to the downside into a correction after sideways choppiness.
XLF, the large investment banks, insurance companies and other financials, are teasing a correction for one day, on Wednesday 8/14/19, during the stock market collapse. The money center banks are popping this morning with price up to 26.20.
The XLF topped out at 28.70-28.73 so a -10% correction is 25.83-25.86 and lower. The XLF came down to 25.90 pennies away from a kiss. XLF at 26.20 is a -8.8% loss off the late July top. The KRE regional banks are mired in a correction while the money center banks and insurance companies are managing to keep their heads above the negative floodwaters. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.