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 … Continue reading Banks/Broads in the face of elevated L/T yields

nftrh plus

NFTRH+; Updating Banks/Financials Short Setups

This NFTRH+ update is emailed to the entire subscriber base (an earlier one was stock-specific and sent only to subscribers who’ve opted in for email delivery) because it is macro related (interest rates and by extension, tactical portfolio adjustments).  A reminder that all NFTRH+ updates are available to all subscribers directly at the website as well.  Last week we had our first short setup update … Continue reading NFTRH+; Updating Banks/Financials Short Setups

NFTRH+; Pairs Trade (KBE & IWM)

In light of the dynamics in play in the interest rate market, one might want to watch a sector that favors rising interest rates (the Banks, given ZIRP at the Fed’s discount window) vs. rising yields out along the curve.  Even though the curve is dropping, if we assume that banks are funded near 0% their lending out across the curve would have a profit motive.

Continue reading “NFTRH+; Pairs Trade (KBE & IWM)”