The Federal Reserve Bank in the United States is now concerned enough about "Major US Bank Liquidity" that they have now imposed an immediate HALT to new share buy backs + dividends ,used by banks to prop up the price of their shares.
In effect, the Fed is now concerned about major US bank liquidity, in the event of a continuing and now escalating global health pandemic.
Put another way, the Fed, in the direst of contingencies, in now concerned about a run on the banking system, as debt issued loans potentially could become insolvent.
The idea that the US banking system could be at " critical stress risk" in a potential crisis, fully explains why the US stock market, is selling off so sharply today.
I’m holding onto my bear etfs, they’ve been kind. I don’t even want to day trade as one piece of news can easily kill off everything you’ve thought was a good decision. Let it ride, we’re way overbought anyways
meltman
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@jsmcgee88, what are your favorite etf’s at the moment?
jsmcgee88
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@meltman, HIBS is highly volatile and dropped since the market began “recovering.” Been kind thus far, I threw other short positions in.
@dRends35,
This 200ma has been a pivot for a long time, both on the way up and now on the way down, although its acted more strongly as support Vs resistance. We will know where we head likely by Mon in the short run, but I suspect we will be testing the 283 support by Aug latest.
dRends35
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@valentinoamoro, If this is to become 1929 crash 2.0 then the current wave should perhaps be the 5th of a 5th of a 5th Grand Supercycle (if you buy into that nomenclauture). Of course the top many have passed but maybe there will be a surprise impulsive move steeper than before with VIX gap filling before the real collapse. @london55555
stealthy1234
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The great depression and recession were due to, in large part, the instability of the financial infrastructure and liquidity. The stress tests were born from the 2008 crisis.
This is bigger news than I think people realize and can cause a massive slide in confidence. Time will tell.