Is Chairman Powell Lying in Order to Help Prop Up The US Zombie Banks?

In the last episode; I pointed out that while the mass distraction lame stream media continues to point at the Iran war, as the only cause of investor angst, the banking system is actually leading declines [link]. 

That alone might explain why Powell surprised investors with an overwhelmingly dovish statement. He's trying to put some window dressing on the quarter, because if redemptions continue to drain capital from the zombified financial system, and that leads to more runs, and then the Fed may be forced to step in, and they don't want to step in. Talk (lying) is the next best thing. 

This morning we're seeing a little leftover weakness from yesterday's session. The ECB is set to report momentarily. That could be a game changer, and a BIG GREEN LIGHT.  

Speaking of Green Lights: That's exactly what Powell signaled to markets, but the market doesn't want to believe it. 

There's an old expression I remember from the 2008 crash, "don't fight the fed", yet that's exactly what I see traders doing. Some investors actually thought the FOMC might raise interest rates - wishful thinking - today, those fools have egg on their face, and a lot of explaining to do to their clients. Powell - he's not even leaving the fed - yet another nail in the worry coffin. 

Speaking of worry: The $VIX has failed to breakout above the highs we saw last week, and that can mean only one thing. The fear trader is overdone. Capitulation? No. We haven't seen real capitulation in years/ decades - only orchestrated 1 month shakeouts. 

Perhaps we only see a rally into the end of the Q1, as I predicted in the last blog [link]. Don't matter to me; I'm a trader, and rallies in a bear market are good trades.
$IWM iShares Russell 2000 ETF DCS Chart Risk On: After cracking the code on the Russell 2000 chart - with no help from AI - you can clearly see that it continues to be bought at the 150 day EMA. 

Other Red-Hot Trades on Deck (WARNING: NOT FOR THE WEAK OF HEART)

• Crude Oil – Of course. WTI's been ripping higher on the Iran/Middle East flare ups, until this morning - Brent crude totally decoupled. If you caught my real time alert you're already up.  

Speculators drive Brent Crude to the $116 target 👇 #CrudeOil #Trade pic.twitter.com/fJCATCouql

— Veteran Market Timer (@3Xtraders) March 19, 2026

• Rest of World / European Stocks – Absolutely decimated lately. STOXX 600 has been bleeding out, down sharply. Classic "risk off" rotation away from ex-US. Worthy of a bounce at these levels. ECB may even help... 
• Gold – Tumbles as speculators pile into Oil instead. Spot gold's pulled back hard over-night setting up a potential test of February lows (around $4,400 or lower if it overshoots to the downside). Safe-haven my ass. The entire rally was speculative, pure and simple.

Take care not to catch any falling knives here – these are momentum/hot themes, but reversals can be vicious in this environment. Always have an exit plan. We're trading rallies in a potential bear market. Buy and hold is dead. 

How Operation Epic Fury Turned Into Operation Epic Market Failure

The broader market continues to form cracks, just as we saw ahead of Passover/Easter, this same time last year. Only this time: terrifying tariff terror, has been swapped for Iran war jitters.
War Coverage and Oil Inflation Fear Dominate The News But Financials Lead Declines 

The chorus of disapproval for private credit gets louder as Morgan Stanley fund is the latest to cap withdrawals (marketwatch.com)  

That's the same Morgan Stanley who spent months trying to convince everyone that we were seeing a healthy "broadening out" of the economy, when nothing could be further from the truth. Crickets from incessant market pumping Morgan Analyst Mike Wilson. 

Who else has gone radio silent? The long-time zombie bank enthusiasts at CNBC's Fast Money.

 
Who was pounding the bear drum on US zombie banks, all the way back in December? Yours truly: Santa Rally Cancelled: Merry Festivus to All  Dec. 24th '25 [link]      

$DJUSFN - 7 slightly higher all time highs vanish, as US financials have given back all their gains for the year ('26). Note the light volume we saw going into 2025 window dressing season, followed by the heavy selling volume we've seen all throughout '26.  

While headlines scream oil and war, financials quietly bled out all of this year's gains—classic smoke and mirrors. 

The Rest of World Bubble I Warned You About Also Popping

$VFWSX All-World ex-US Index - In free fall. It looked like it might crawl back above the stop-hunt line and stage a rally on Friday, but that wasn't in the cards. If global markets continue to crash, then the 200 day moving average comes into focus. 

$VFWSW All World ex-US

February OPEX Friday: The Final Tim Seymour Pump Was The Kiss Of Death 

$IDVO Amplify International Enhanced Dividend Income  

Note: Capital Wealth Planning LLC (CWP) and Seymour Asset Management LLC serve as investment sub-advisers to the Fund.

Let’s be clear — Tim Seymour openly uses his CNBC platform to pump $IDVO, the very fund where his own firms (Capital Wealth Planning and Seymour Asset Management) serve as sub-advisers. Conflict of interest, anyone?

The Major indices including the Nasdaq are testing the 200 day SMA, and there's a good chance we see the rug pulled below that level in Sunday evening futures... - in order to take out some stops - but as long as the $VIX doesn't start breaking out again, I think we can expect to see the end of the quarter window dressed, unless Morgan Stanley wants more redemptions, as private credit loan losses spiral.   

Mag 7 stocks were sold at the 200 day SMA on Friday, and if the selling continues that's bound to pull the $SPX lower. 

Operation Epic Fury Has Turned into Operation Epic Failure 

• US/ Israeli bombing campaign slows 
• Iranian regime as defiant as ever
• Iran supreme leader replaced by the far more radical son...   
• Russian sanctions weakened
• US Oil reserve depleted 

Trump claims Iran "wants to make a deal", but watch for Trump to turn tail, and chicken out again. #TACO    

Last year's ridiculous selloff was followed by one of the biggest short squeezes in Nasdaq history, so you better keep your guard up. $VIX in the upper 20s equates to 1000 point (2%) moves on the Dow, and the $VIX at these levels works in both directions. 

Take Care, AA