UBS (UBS â€“ NYSE) [went up over 2% yesterday], but not because they have more clients or are doing more business.
And, even thatâ€™s still an unconfirmed rumor.
Rallying on this headline has plenty of problems.
If all you do is take that 2% at face value, you might think that UBS was breaking out.
But when you look at UBS weekly chart, you can see that it has been unable to set a new high for seven weeks now.
Why canâ€™t UBS get past $13.65? For the same reason we told you to sell Capital One Financial (COF â€“ NYSE) and Morgan Stanley (MS â€“ NYSE).
The entire financial sector, as illustrated in the Financial SPDR chart below, is locked in a pennant with repeating failures at the top line, all as the entire niche struggles to find genuine revenue gains.
Bottarelli Research Tip: The picture will only get uglier as we move into November. Sell UBS into this Dead Cat Bounce.
– Bottarelli Research
Source: Bottarelli Research