Where are the Banks Going? – An Observation

Okay, I have a coin in my hand. Can anyone tell me with 100% certainty if it will be heads or tails? The simple answer is – NO.

 

The banks are about to report earnings this week and there is this interesting little chart we have been watching for some time. The below chart shows the price relationship of the Canadian banks relative to the price of oil. While no chart is repeatable forever and no economy is ever the same twice, it is interesting to observe.

 

 


Source: VIP Wealth Solutions and Bloomberg

 

Are the price of the banks going up or down – heads or tails?