There's a lot to cover after last week, but I have a much better handle on things than I did on Thursday, following what looked like a panic close....
See: The FOMC fallout in forex markets & the Crypto Crackdown - full story
Despite all the negative headlines, stocks actually ended higher (for the week).
Friday's Action
We didn't get the short squeeze I was looking for, but I did get the direction right.
Market futures looked pretty dire at the time I made that prediction, but the market still managed to eek out a pretty nice gain - 50 handles on the $SPX - (off the lows of the session).
Off topic:
I follow space weather, because a CME has the potential to wipe out way more than just the stock market - and this week's Solar Storm put on quite a show!
Huge ‘doomsday’ blast from sun this week could have killed Earth’s internet www.kulr8.com
We should take this tweet seriously. It reveals a diffuse CME, not related to the contemporaneous M-class flare from AR 13256. This CME would not have been clearly identified in LASCO difference images with shorter delta t. The on-disk signatures (AIA) were also quite stealthy. https://t.co/VmGzgwe4ea
— Halo CME (@halocme) March 22, 2023
Strongest solar storm in nearly 6 years slams into Earth catching forecasters by surprise space.com
I retweeted this CME alert on the 23rd, because I could see it was massive, and if I see another massive CME pop up on my radar, I may send out an alert in the news letter, because that could be a catastrophic event, as much as we rely on technology!
Speaking of Technology
Stocks actually ended up for the week, but I have to attribute that to 1st quarter window dressing. The best performing sector was tech, and of course China. Remember this is what led the rally - in Oct. - and tech out-performed in the 1st quarter.
Window Dressing
As we trade into the end of the First Quarter, any fund manager not fully invested in a leading sector, risks losing his, or her, job. We call this phenomenon, "being forced to chase performance". It's also called window dressing.
Side note: $AAPL Apple Here's something funny.
Just for kicks, I put a trend line on Apple, and tweeted it on Thursday
I was able to find Carter Worth's trend line on Apple shares. Wasn't too difficult... #CNBC $AAPL @CNBCFastMoney pic.twitter.com/D86cjzNdgl
— Veteran Market Timer (@3Xtraders) March 23, 2023
Then Yesterday Friday, I see Carter Worth on Fast Money, covering Apple.
If you happened to catch that, maybe you can tell me if he was bullish or bearish, because it just seemed wishy-washy as all get out. But I digress.
What Next?
If I'm correct, then we're about to see a run for the exits, as most brokerage houses have already closed their books on the Quarter. I call this phenomenon, "window dressing - going up in flames".
Financials and Banks
As I said earlier in the week, this market reminds me of '08, when financials led the crash, and I still follow financials closely, including all the major banks, and even several regional banks.
The financial crisis didn't end in '08.
The Zombie Banks are like the walking dead, and require regular injections (of money) in order to keep them alive.
Anyone who believes otherwise, just either doesn't have a good chart, or a good memory.
Many of these Regional Banks are skating on thin ice, but I think we've seen the worst for now.
The plunge protection team even came out in support of the banking sector after Friday's close.
Breaking News after the closing bell on Friday - FSOC (Financial Stability Oversight Council) aka the plunge protection team
U.S. Treasury says FSOC agreed banking system sound reuters.com
Short term
Financials trade into a bullish inverted Head & Shoulders pattern
26 Goldman Sachs Alumni Who Run the World (GS) investopedia
I wonder what Goldman Sachs knows about the collapse of these "other banks" (wink wink) Deutsche Bank #Bullish Government Sachs $GS pic.twitter.com/TWiSfmouvN
— Veteran Market Timer (@3Xtraders) March 24, 2023
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