[Chart courtesy of MarketWatch.com] Moving the markets Market bulls received news on the banking crisis that they interpreted as hope that things are not as bad as feared due to the takeover of Credit Suisse by UBS, which appeared to be nothing more than a forced wedding by the Swiss government. The broad markets advanced, and even regional banks rebounded …
ETF Tracker Newsletter For March 17, 2023
ETF Tracker StatSheet You can view the latest version here. ENDING A ROLLERCOASTER WEEK WITH A NOSEDIVE [Chart courtesy of MarketWatch.com] Moving the markets The state of the US Banking sector remains precarious, as confidence has not been restored causing the major indexes to take another dive. Maybe traders finally got the idea that, not just covering $250K of …
Reader Q&A
[Chart courtesy of MarketWatch.com] Moving the markets After an early dump, the major indexes shifted in reversal mode not because the banking crisis had passed but merely because a temporary fix had been found. A consortium of 11 of the largest US Banks combined forces and agreed to a historic $30 billion unsecured deposit injection in First Republic Bank (FRC). …
Banking Crisis Expands—Meltdown #2 On Deck
[Chart courtesy of MarketWatch.com] Moving the markets As I posted before, once you find a cockroach in your house, you can be assured it’s not the only one. That is akin to a banking system that got addicted to low bond yields and is now trying to deal with and operate in an environment of higher rates, which means that …
Rebounding From A Crisis
[Chart courtesy of MarketWatch.com] Moving the markets Traders were relieved that risk of contagion to other banks appears to have been contained, at least for the time being. I think there is more to come, since additional cockroaches are likely to be hidden and will eventually surface. The major indexes rallied, dumped, and rebounded to score a green close with …
A Bailout In Progress
[Chart courtesy of MarketWatch.com] Moving the markets Apparently, Fed head Powell, Treasury Secretary Yellen and the head of the FDIC must have been in panic mode, as they combined forces by announcing (on Sunday) a plan that would backstop ALL depositors in the failed Silicon Valley Bank, while concurrently making additional funding available for other banks. Regional banks are not …