Thursday, 7 April 2016

DB - the big system threat to the EU

With the main market closing significantly lower, there was particular weakness in Deutsche Bank AG (DB), which settled -4.7% @ $15.40, the lowest close since Feb'11th. A break of the Feb'9th low of $14.78 looks inevitable, and it is justifiable that DB is a valid name to also be on the 'disappear list'.

DB, daily

DB, monthly


From a pure price perspective, the financials are unquestionably suffering due to continuing low/negative interest rates.

The central banks simply don't much seem to notice or care, about the destruction they are causing to the very institutions they bailed out just seven years ago.

Regardless of any near term price action, DB looks set to lose the psy' level of $10 by early summer... and at that point, the mainstream will probably start wondering if there is a serious problem.

*no position. I prefer to merely short the indexes... but DB is a key institution to keep an eye on... not least for those who live within the EU.