Financials continue to shine going into Friday pre-market trading. European Financial stocks also shed some light on investor sentiment in this industry group. The banks, asset managers and insurance are primed for higher prices.
The European Financials EUFN are breaking out.
The EUFN presents a compelling reason to scan some of the european banks for potential trades and swing positions going into the summer. This comes as Mario Draghi signals a need for higher interest rates in Europe.
“As the economy continues to recover, a constant policy stance will become more accommodative, and the central bank can accompany the recovery by adjusting the parameters of its policy instruments — not in order to tighten the policy stance, but to keep it broadly unchanged.”
As European banks continue higher, Draghi’s comments will only serve to provide a tailwind and catalyst.
Credit Suisse is a favorite when conditions like this persist, so we started a position on Thursday with this in mind. Price action in this weekly chart suggests little resistance overhead (> 16) in the way of supply.
Domestic Financials also show signs of continuation, as broad financial stocks continue to show institutional buying activity. XLF is trading higher this morning.
We anticipate trading will pause around 12:00 noon, as traders leave for the holiday weekend.
I’ll be LIVE around 9:10AM. See you on Livestream…..
Happy July 4th.