Banks-Sharply up this morning

[Mr_S]

thanks barry, wil keep that in mind :-)

[louisg]

FA have NOTHING to do with TA.

[louisg]

Short term or long term or both.

[SIMBA]

I tend to agree with divz T.A.tells us what should happen in a perfect world,Charting tells us what happend yesterday.I believe that besides the obvious causes ie sub prime,there is a huge argument for perception.With mac & mae out of the equasion, a good speech in Berlin will give the financial market world wide another healthy dose of confidence and shares will continue to rise.....

[platsak]

Sounds Good. Im getting temted too edge in a few shares. SBk tech analysis this morning on financials. Bullish alert: Buyers are looking very keen on the Banking Index which is trading above the resistance trendline of its mediumterm bear trend as well as the 29,870 resistance level. A positive break out of the bear trend would be confirmed once the Index closes above the 29,870 level, after which movement towards the 34,850 mark is foreseeable. Breaching the 34,850 mark could spur further upside to 37,365 or even to the resistance trendline (previously the support trendline) of the major bull trend.

[#6]

This leap makes no sense. Prices are up almost 20% in two weeks but there is still no talk of economic upturns or interest rate drops. The US is still bailing out its financial institutions, Economists are still debating resessions and some are actually starting to ring depression alarm bells. Banks are laying off, but the market is getting bullish??? To me it looks like everyone is pulling their money out of resources and needing to dump it somewhere. Wait for an oil upturn and we will have a reversal again

[#7]

WOOOHOOO BANKS ARE FLYING !!!!

[asylum]

and about bloody time.

[barry_1]

Yes the technies cannot understand the turn around and keep on with dire predictions tut tuting b'cos their regression lines are crossed.Besides Tito's doing the interim and final declarations are due which also has an effect on the shares now.If the declarations do not measure up to expecttions for any of the big four there is likely to be a pull back and of course the techies will feel justified as it seems only they can can tell when the shares should move up.In the past i remember bull runs going on for up to five months,which will if now occuring wipe the shorts off the face of the earth!

[#10]

I sense the tide for banks is turning as we head into the close. Who'd be long come Friday? Will you hold till Monday? I know Wena and I will be short... hopefully we won't have to eat any of that nasty humble pie... lol.

[barry_1]

always good to sell CALL warrants,now or tomorrow.IMOO

[#12]

True that, I have been getting nervous today as I kept trying to pick the top of the rally. Just kept adding to my current ssf shorts. If you were long yesterday and today then well done, must have made some nice moolah. But I am not trading against anyone here, this whole argument started because some of us believe that this is the turnaround for banks. I still maintain we'll see one more downleg on financials before we can even start to think of a more premanent recovery.

[#13]

I am with you Skippy. Short SBK today. Look at what happened last week. Quick rally then back down. Happening again this week. Oil rises today...banks down tomorrow..and so on and on and on. Nothing fundamentaly has changed to get the banks moving up again...besides some talk from Investec to help their shares :) and resources not having a good few days.

[MichaelR]

I think Standard bank is cheap.

[louisg]

Agreed.

[asylum]

the trend is your friend when resources were flying everyone said follow the trend, now that banks are on the move we dont follow the trend but try and find out why they are moving. who cares why the banks are up and im following with a tight stop loss until that stop is intact i follow.

[SIMBA]

Today will be the first hurdle for the recent good showing,besides the end of week coverings,the slight sell of in the main markets and the less than inspiring speech from Obama.If the big 4 can hold there own today,i will be very happy........

[pirates]

looks like a very bad day ahead for banks based on us and oz financial markets..the rollercoaster ride continues

[#19]

Oh the awesome power of some good TA. MichaelR and louisg, just because something is cheap does not mean it can't get cheaper, so why not learn some TA and try to time your purchases a little better. Asylum, the trend for banks has not changed, do not be fooled by relif rallies in what is essentially a very strong downtrend. Chartist calls this the Bear Trap. Maybe I'm gloating a little early this morning but I still maintain we'll see fresh lows on financials before we even start to see some sort of recovery. The power of TA is awesome...

[YNWA]

Courtesy of BOE: "Derivatives Trading Strategy With many banking and financial stocks worldwide enjoying solid gains it seems today we might see the tide turn. Traders can look to short banking counters as the move we have experienced recently smacks of short covering and over exuberance on the upside. Stop losses and potential target areas for profits for the some of the stocks are as follows: Standard Bank (stop loss R89, target R80); ABSA (R102, R90); African Bank (R28.70, R25.18- 50% retracement of the up move) and Nedbank (R105, R93.20)."