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Banks Fail To Rally Despite Strong Buybacks and Dividend Increases

Banks Fail To Rally Despite Strong Buybacks and Dividend Increases

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Banks Fail To Rally Despite Strong Buybacks and Dividend Increases

How ’bout them banks? Well, that was fun, wasn’t it?

Sorry folks the buybacks are not going to be enough to save them, not as the yield curve continues to flatten, and the 10-2 year spread around 30 bps.

We can see the only major bank that was up today was JP Morgan by only 13 bps, even BofA fell by 1.6 percent.

C Price Chart

C Price data by YCharts

BofA may be on its way to $26.

bofa

Let’s move, I’m tired of talking about the banks. You can learn more in my member’s area, I do a whole video on it. Don’t Celebrate Yet For The Banks

Gap filling is back in vogue, just look at the S&P 500 today. Gap up, fail at resistance, take ’em down by the close. Wow.

sp500

Sorry folks, Micron still can’t get over $54, perhaps that resistance level, is just a figment of my imagination, or there is really a seller there.  I continue to think MU drifts toward $49 to $50.  micron

But perhaps there is something positive developing in the chip sector because the SOXX ETF filled the gap at $176 and despite today’s give back, that support has held.

soxx

More this weekend, maybe even a prediction or two for the second half of the year.

That’s enough for a Friday on the last day of June.

-Mike

Photo Credit via Flickr

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

#sp500 #banks #JPMORGAN #BOFA #CITIGROUP #MICRON#chips

 

 

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