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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (4495)	8/29/2001 4:04:28 PM
From: OX	Read Replies (2) \| Respond to of 33421

possibly the end of the rate cuts since that will directly affect banks profits

To: Chip McVickar who wrote (4495)	8/29/2001 8:58:41 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi Chip, I don't like the performance of the BKX. I noted Monday morning that the BKX index had dropped below it's 200 dma Message 16264285 The BKX (Bank Index) has slipped below 200 dma today..that's a negative 885.87 is 200 dma and it's continued to head south all week. we've seen weakness in the thrifts, and S&L's as well. The Market is probably looking at the ending of the easing cycle and also becoming concerned about a future pickup in Inflation rates that Milton Friedman warned us about this week. A further reason for the financial sector decline is that the market continues to sell valuations of equities lower, and "Mr Market" may have decided that the PE Multiples, Price to Sales and Price to Book Multiples are too high. With the slowdown in the economy, both domestic and overseas concerns are also rising about the credit quality and Percentage of non performing assets that the banks and financial stocks have. The BKX, looking at the Daily Bar chart, appears to be breaking down out of a bearish descending triangle, as does the DJIA and NYSE. look at these 2 charts mrci.com Now looking at a bigger timeframe,we get some perspective... mrci.com Short-term the ECB, may help support the a market rally, with a rate cut and some constructive wording of their statement. This may or may not be forthcoming tomorrow. John