Charty. Do you think there is enough (any?) support on the banking index (my weekly closing chart) at 21 180 or 22 005 which could see a return move to the neckline? The index seems to be at the bottom weekly Bol & Kelt. bands, but not near the support line from APR '07. I suppose we shall soon enough see, but what do you think?
ja this is such a counter intuitive trade/against conventional wisdom trade... which is why people has problems with it...but short has been the right direction since I started talking about this.....I cant help thinking the market knows something about the banks which they are hiding....the assumption has just been that SA banks are rock solid...what has this been based on?...i mean do we know?
The real fun and games started with US banks as soon as mortgages went into negative equity. It's only now starting to happen here in SA after one of the biggest property booms in history. No, SA banks did not go as far overboard as US banks in their lending, but all those pre-credit-act & 120% bonds will now start to come home to roost.