European Excellence?
Of course, that subject line may be a bit misleading, but one must give credit where it is due and PRICE action currently is suggesting performance going forward may outshine our domestic peers. EUFN is putting up impressive numbers, higher by 9 and 18% over the last one and 3 month time periods compared to the XLF rising 4 and 8% respectively. Some of this could be the deterioration of BRK/B, which we will discuss later in this note, but some foreign names demand investor attention. Looking at ADR charts of some European names like DB is not shying away from an upside gap fill from the 4/26 session here which completed a bearish island reversal (it has now posted three strong positive earnings reactions in a row). BCS is up 40% YTD, and pays a dividend yield of 3.7%, and is pushing away from a bull flag pivot of 10.50 which carries a measured move to 12. Overall the group seems fine, with even the KRE breaking ABOVE a bearish descending triangle and we know from FALSE moves come fast ones in the opposite direction.