Regional Woes:
The regional banks have been underperforming the traditional money centers, and that is continuing into 2023. On a YTD basis, the XLF is higher by 6% compared to the KRE by 3%. Some former leaders have been under assault including MTB FRC and the chart below of SIVB. MTB is still 20% off most recent 52-week highs and Thursday filled in an upside gap from the 12/6 session. Last week CLOSED 15 handles off intraweek lows to gain 2.8%. FRC is 24% off its own annual peak and since the big week-ending gain of 11/11 that rose 13% in the largest WEEKLY volume since the first week of 2019. If it can climb above its 200-day SMA, where it was stopped Thursday it could set up nicely. SIVB is an outlier of the trifecta of 55% from its 52-week highs although it is on a current 5-week winning streak and trading between the very round 200-300 numbers during the time frame. Some may declare a bullish island reversal was completed with the earnings reaction, but if I had to put capital to work in any of the 3 it would be FRC above 141.