alice

NFTRH; The First Real Market Input Comes In (med. priority)

We have been waiting to clear the Trade War noise and get to the meat of what will really drive the market view this summer; that is earnings season and the expectations therein from analysts and investment firms.

See this post at Biiwii for a look at how it is starting off for the Financials sector.

Tank de la Bank

It is by my friend Tim Knight, a perma-bear if ever there was one. But in this case, it is what it is, a simple post showing what we had hoped to see as an indicator that things could get rough this summer. Banks are getting woodshedded on earnings. [edit] Tim’s charts make things look dramatic. The actual activity, post-open is just down, not cataclysmic. It’s a hint at this point.

The banks are pro-yield and a continued decline in yields this summer (regardless of a still in play potential bond bear market out ahead) could go with a lurch to risk ‘off’ in asset markets. The banks could lead that.

It’s just one data input on one day. But I thought it relevant. We’ll develop the case going forward.