Banks/Broads in the face of elevated L/T yields

Not very happy signaling from the Pigs

Neither nominal KBE…

…nor the KBE/SPY ratio are looking very good in the face of rising yields. Indeed, KBE above is in a nasty looking pattern as it stands now. The banks are normally thought to benefit from rising yields, but I think a ‘carry’ on the short end is busted. But then again, you could view the whole modern casino as busted in some way, right? IMO brought to you by our over-meddling central planners.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down) or see other options. Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

Testimonials

Gary

NFTRH.com

This Post Has 2 Comments

  1. Michael B

    The central planners made this mess. Now, we all get to wallow in it. Such a Deal.

    1. Gary

      Best we can do is understand it as best as possible, try to stay out of its way when needed and capitalize when we can. Much easier said than done w/ a self-conscious entity like the Fed that opens its mouth at will to manage expectations.

Comments are closed.