It's been a month since the Brexit storm rolled through the world's charts. Amazingly, it turned out to be one of the best times to put money to work. One of the blogs I wrote shortly after the Brexit event covered off the global banking charts. When Should You Think About Protecting Your Portfolio ...Ideas Inside. In the concluding paragraph, I said this was not a reason to sell everything. It was a reason to make sure you were in the best-performing stocks. Now we sit having a massive bounce off the lows that broke out charts globally to all-time highs, new 52 week highs, or above down-sloping trend lines.
So what's next? We can see on the ETF chart for European Financials (EUFN) that the stocks dropped 24% and then bounced almost 13%. I have put the Fibonacci retracement levels from the night before Brexit to the lows on the chart. The European banks have rallied back up about 38.2% of the Brexit drop. Some of the European banks are asking for the European Central Bank to recapitalize the European banks. For that, we need to turn to Mario Draghi.
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