EUFN
I'll take a shot at DB down here... European banks (DB, BCS, LYG) are getting crushed lately... here's where I'll take a shot at a long play on DB, but on tight leash!
European banks turn up as US 30 year treasury bonds fallBanks do better in a high interest rate environment. The US central bank is going to be reducing its balance sheet by selling US bonds. As the yield curve steepens, interest rates rise. If reflation holds (DXY falls, interests rates rise AND it doesn't crash the market), banks could do very well. Watch for upward resistance here. The european banks are up today. To see the intraday STOXX 600 banking prices, go to STOXXdotcom and search sx7p. See the links to the relevant etfs for trading options.
I am only short USB10yUSD via TWO right now. Note the chart shows 1/USB30yUSD, the inverse of the bond price (yield is also inverse to the bond price).
EUFN: European financials are in danger hereI think we can get a retracement in the financial sector, and Europe is in worse shape than the US in general. It wouldn't surprise me to have some negative news pop out, surrounding Italy's referendum, Deutsche Bank, Italian Banks, UK banks, Brexit, etc. Quite a few potential catalysts for volatility, so, if we see this ETF break the linear regression channel support, we will probably see a rapid selloff.
Keep your eyes open, it might be safer to stand aside, and book succesful long trades, or maybe even take a couple strategic shorts.
Good luck,
Ivan Labrie.
