Banks-Sharply up this morning

[platsak]

Looks like the market likes Old Mutuals commentary on interest rates. I dont know what too think about banks anymore. Any opinions out there.

[SIMBA]

Proposed fual decrease could be another feel good factor,with the hand shake and no inrease in rates at the next meeting..this could be the next jumping point as i said yesterday....

[divz]

IMO there were 2 triggers for banks 1)lower oil prices 2)reversal in interest rates outlook. Both are looking good. This could possibly be the turn.

[#4]

When banks do decide to turn for good it won't be as obvious as a few market commentator articles and comments to turn it around. Do not be fooled by all the noise out there. Banks to make fresh lows before we turn around... omo.

[barry_1]

see also my comments under warrants yesterday,as i agree with u.

[divz]

Wena, the oil price has actually come down over the last week so not noise- ok the interest rate talk is still market commentary but lets look at today $ stronger/rand stronger/oil down thats like a triple whammy on cost of fuel not saying it will last but the signs are there. Fuel down=inflation eases=int rates ease. Barry looking at your warrants thread you agree with me?

[louisg]

Things are certainly looking up. Hopefully xenophobia attacks are behind us. Electricity supply has stabalized and even Zimbabwe is moving in the right direction. The latter contributing to the stronger rand. With a better outlook for inflation and therefore interest rates the INFLECTION POINT for finacials and industrials should arrive sooner rather than later. OMO

[#8]

I'm sorry but I simply pay no attention to any of the news out there. I'm a technical analysis trader and this is pointing to banks moving lower than their more recent lows. It may take some days/ a week or two, but we won't be seeing any more significant upside. Do not be fooled by relief rallies in what is essentially a very strong downtrend.

[platsak]

There's my predicament. I really agree with both sides of that discussion.

[#10]

IMO things will definitely change when Congress decides on Freddie Mac and Fannie Mae rescue. Could happen today.........

[louisg]

Nobody knows where the banks will be in a day or a week's time. Are you suggesting that the banks result presentations are not important information? Where do you think banks will be in 12-18 months time?

[Wizard]

hey...both go hand in hand

[Wizard]

Right...but which side of the equation are u IN..

[louisg]

Wizard, please elaborate.

[Wizard]

that was an answer for Wena...technicals and fundamentals support each other

[#16]

Wizard, technicals and fundamentals definately don't go hand in hand from a trading perspective. If you use technical analysis for trading then you base your decisions on the fact that everything is discounted in the current price and the Technical buy or sell signals is what you act upon. Whether these technical buy/sell signal coincide with some news being released into the market is irrelevant, you simply stick to your trading system. Technically, banks have lower targets in place and this carnage is certainly not over. When the next big news announcement comes out and banks start dropping then people will hold this announcement to be the reason. Meanwhile the share price was always pointing to lower levels coming...

[#17]

Well said Wena, I couldn't agree more. Technically Banks are definately pointing to lower levels to come... omo.

[Mr_S]

while we on this topic, im new to this investing game but im curious as to why FirstRand's share price is much lower compared to the other banks? and do you think it would reach the prices of say, Absa for example?

[divz]

Each to his own but imo In normal trading circumstances maybe TA works on its own the current market is way off normal and in the current market TA helps very little there are just to many things that can move the market radically either way.But maybe im just too dof to understand all the technical gumff.

[barry_1]

Gosh i hope u do not mean the actual price? If so ,good comapnies are always sub-deviding their shares by 10,20 or even 50 times to make them more tradable or in cases where there are too many shares they consolidate and then issue less shares out hoping to hold up prices.You cannot compare shares on their actual prices but only looking at the MARKET CAPITAL VALUE .FIRST NATIONAL BANK has a market capital of 74 billion and is one of the big four banks....Today its share price increased in line with the other banks.