Wednesday, December 16, 2009

BKX Drops Ahead of the Fed

The banks got hit hard on Tuesday with the BKX falling nearly 3%. Below are results of the last 10 times the BKX dropped on the day before a Fed Day. Gains of 5% or more are highlighted in yellow.


3 comments:

Jimmy said...

could the last 2 years just be 'dead cat' bounces within a bear market? interested to know what were the results of earlier time period (like during the bull market period from 2003 to 2006.)

regards, jimmy

Toptick said...

Jimmy had my question. Rob, do you have the results before the last few years? Seems like the big bounces were all in times of credit stress, and I'm wondering if we might be into a new phase of bank/Fed relations ...

Thx

Rob Hanna said...

I showed more detail in last night's subscriber letter and took the data back to 1993 (as far as my BKX data went). Prior to the last few years there was generally a mild bullish tendency.