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The big banks (XLF -3%) take a licking following the election, which also included making a...

The big banks (XLF -3%) take a licking following the election, which also included making a Senator of Elizabeth Warren. The banks can probably work their way past those worries, but their fortunes remain tied to the economy and the trading environment, both of which show little sign of picking up. One bright spot is mortgage activity, but this comes with lower rates, meaning narrow interest margins.
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  • TheMONYReport
    , contributor
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    XLF has broken its 5-month trendline dating back to the June 2012 corrective bottom. Today (11/7), XLF gaped lower at the open and the selling did not relent until the close. Volume was incredible at +109 mil shares. Nearly 2x the 60d EMA. We expect continued selling in the Financials throughout the Q4 2012 as investors turn away from risk and into safety. The continued uncertainty revolving around the Bush Tax Cuts, US budget deficit ceiling, and bipartisan legislation appear to be the drivers of the selling. The MONY Report has an initial downside target of 14.60 for XLF.
    7 Nov 2012, 10:34 PM Reply Like
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