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. 

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