SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 389.75+0.5%Dec 1 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TheSlowLane who wrote (13885)6/11/2008 11:46:40 AM
From: shakes  Read Replies (1) of 29622
 
TSL:

reference the $BKX:
a similar commentary from the Contrary Investor Market Observations, 6/10:



"Before pushing ahead, two quick and very simplistic charts regarding the banking sector. Point blank, either the baby is being thrown out with the bathwater here, or recent price moves are nothing short of ominous. We all know equity market action last week was not a pretty sight. But the important issue for the week was that the Philly Banking Index (the BKX) decidedly broke important support on its way to a new low for the year. We need to remember that over the last quarter century really, the financial sector has been an important leading indicator for the macro equity markets. Is this price action "telling us" that the next phase of macro credit cycle deterioration lies dead ahead? We don't take this question lightly.


"The BKX closed last Friday a touch under the 70 level. We simply remind you of the much bigger picture in the chart below. As we've noted, 60-66 is absolutely massive long term technical support for this important index. We have no idea where the BKX is headed near term, but we'd expect this zone to be important downside resistance. If that's not to be the case and the BKX breaks this level to the downside, it would be possibly one of the most bearish indicators we could think of. We're not there yet, so we watch."

A long-term chart of $BKX from '96-'08 was included (but wouldn't cut/paste) that showed the importance of the massive 60-65 support.


regards,
Shakes
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News