[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 …
Treading Water
[Chart courtesy of MarketWatch.com] Moving the markets Despite a last hour attempt to prevent another session in the red, after yesterday’s slam, the major indexes managed to climb back to their respective unchanged lines, as dip buyers were conspicuously absent. However, a late Market on Close (MOC) program propelled stocks off their lows. Economic data points were solid due to …
Is The Market Finally Buying What The Fed Is Selling?
[Chart courtesy of MarketWatch.com] Moving the markets Today, it was Powell himself singing from the same hymn sheet that his mouthpieces have used for months, namely rates may need to go “higher for longer,” a theme I have pounded on ad nauseum. Maybe today, market participants are finally buying what Powell is selling, which caused havoc in all asset classes, …