ETF Market Moves: Banks May Head Lower
Tim Knight | Nov 13, 2019 12:28AM ET
Let’s thumb through a smattering of ETFs before Wednesday’s open. First up is Mexico (EWW) which has broken its intermediate-term uptrend.
The small caps (IWM), my present obsession, has mercifully not pushed through its horizontal. I am pleased to say every single one of my shorts is profitable as of Tuesday’s close, in spite of that day marking the highest point in human history for U.S. equities.
The Dow Transports (IYT) had broken out last week, but they’re leaking back into their 2019 range.
Banks (KBE) likewise broke bullish last week, but they have been hemmed in by the long-term trendline. Banks have been pulsing higher since early October, but my view is that the cyclic pattern within their ascending channel is going to make the next move lower.
Lastly, a longer-term chart of the U.S. dollar versus the Chinese yuan. I have always held that, as long as the USD/CNY is bullish, U.S. stocks are in harm’s way. This bullish pattern has helped, and should it rally, my opinion is that stocks will resume their troubles.
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