*** Banks to sell off today - anallysis attached

  1. 346 Posts.
    NAB for the second consecutive day (today) has not lodged a Daily Share Buyback Notice. As indicated yesterday, the brokers to the Buyback, Salomon Smith Barney were in fact Net Sellers all day for 2 days in a row (check this with your broker on market share analysis). This gives us every hint that something is not right.

    Secondly, the CBA result just out today, has an underlying result which is near expectations. However the marekts will not like the 17% increase in Bad and Doubtful Debts provision up to $449M. What does this signal in terms of Credit quality going forward, esp as rates continue to move higher?

    Thirdly, the recent internationl trend over the past week, esp in the US is to swith out of banking shares into growth, eg. Nasdaq. The same is happening over here, hence the likes of AMC, SRP, LLC, NCP , etc bouncing back and the banks stalling.

    Fourthly, check the technical analysis on all tha bank shares. "Black Candlesticks formations on most of the recent days showing that the big boys are selling all day from the open. All the charts are on the verge of breaking down with a correction up to 5% downside.

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