« Chips still dip, Wed., July 27, 2005, 11:10 AM | Main | U.S. confidence up, rates down, Wed., July 27, 2005, 2:44 PM »
July 27, 2005
U.S. Regional banks topping out, Wed., July 27, 2005, 11:45 AM
Let's have a look at the regional banks in the U.S. In my mind this is an important group for assessing the confidence of the small investor in local economies as well as equity markets generally. So, when I see RSI indicators that have been well above 70, and then have turned south, that is an indicator to me that the broad market is likely to follow. At least, as I say, it's another perspective worth considering.
Regional Banks -USA Major Regionals
Regional - USA Mid-Atlantic Banks
Regional - USA NorthEast Banks
Regional - USA SouthEast Banks
Regional - USA SouthWest Banks
There is one U.S. regional bank that has been hyped every day on a popular Financial Entertainment TV show for almost two months. The stock is up +25 pct in six weeks. I'm thinking he's going to start screaming, "Sell, sell!" after it comes off say 15 pct. Then he'll tell you he had it right all along.
I say, be cautious. These companies are now caught up in the mergers & acquisitions game. Promoters are being paid big dollars to promote the share prices higher. That's printing currency for acquisitions, or to defend against being acquired.
But, it's not helping you make a good risk adjusted return on your capital over the long run, which ought to be your objective.
Posted by Posted by Bill Cara on July 27, 2005 11:45:37 AM | Category: 40 Financials