Stocks look poised to head sharply lower through the rest of this year. The banking crisis has been snoozed like your alarm clock blaring at you first thing in the morning. The thing is you only get about 5-10 mins before it blares at you again. More bank failures are coming. Most banks are holding treasuries with unrealized losses and myself and others are combing through balance sheets and finding weak players asking to collapse.
This summer looks very negative. My hunch is the debt ceiling issue is going to compound the bank crisis. There seems to have been no progress made at all between Republicans and the White House over the last couple months and we only have 2-3 more months before this becomes a catastrophe. Myself, along with many others, believed initially that this was a non-issue, but the charts are saying otherwise. Perhaps we should not dismiss this as impossible. It could be a black swan that's right in front of everyone's noses but they don't think it is worth inputting into their risk calculations yet.
The rally from the October lows is not impulsive. There is no wave count to be made that is bullish there and the upward action has cut back into previous highs a couple times so there are many reasons to believe further downside is much more likely.
It is going to get a lot worse before it gets better folks.
I hope you all have your seatbelts on and some money in Volatility.
There won't be a warning. One morning we'll just wake up and 6 more banks have announced stress and people will start freaking out. Volatility will spike 40% in a day and people will rush in.
Good Luck.
This summer looks very negative. My hunch is the debt ceiling issue is going to compound the bank crisis. There seems to have been no progress made at all between Republicans and the White House over the last couple months and we only have 2-3 more months before this becomes a catastrophe. Myself, along with many others, believed initially that this was a non-issue, but the charts are saying otherwise. Perhaps we should not dismiss this as impossible. It could be a black swan that's right in front of everyone's noses but they don't think it is worth inputting into their risk calculations yet.
The rally from the October lows is not impulsive. There is no wave count to be made that is bullish there and the upward action has cut back into previous highs a couple times so there are many reasons to believe further downside is much more likely.
It is going to get a lot worse before it gets better folks.
I hope you all have your seatbelts on and some money in Volatility.
There won't be a warning. One morning we'll just wake up and 6 more banks have announced stress and people will start freaking out. Volatility will spike 40% in a day and people will rush in.
Good Luck.