cba,nab,anz etc expensive or not, page-13

Looking at a chart of the ASX 200 Bank (ex Property) index, it is looking very weak for all companies in this sector. It has support at the 2925 level (currently on the index now). Two weeks ago (18 Nov) it hit a low of 3911 (lower than the 10 July level of 3933).

This whole sector is looking very weak. I would be very cautious.

I agree with datasponge that the AUD should have a pullback shortly. Looking at the AUD chart and comparing this to the OI in the futures, profits will be taken. There are a lot of speculators trading the AUD presently. Economists are wrong sometimes... markets are not...

Any pullback in the dollar will be positive for any Australian Company which has dealing overseas or trades in $USD denominated products (eg copper, tin, zinc etc).

S/T this will be good for resource stocks. A lot of banks now derive their income from overseas, so this may have a positive flow on effect on the share price for the s/t also.

Overall though I do not have a positive outlook for this sector. In general keep out of banks and related stocks.

Ewebute