3/16/23 Fear Jumps The Pond


On Wednesday, another bank took a nose-dive on Wall Street.

This time the fear crossed the Atlantic. Swiss-based Credit Suisse (CS) fell as much as 30% in early trading as investors fled the bank.

Image from AP 

The selloff was caused by fears it could be the next bank to collapse. Shares closed down just 14% after the Swiss Government offered the bank a bailout.

According to a press release, the bank is taking about $50 billion from the government to shore up its books.

Major indexes slid lower in early trading but clawed back some of the losses for a mixed finish…

  • Dow Jones -0.9%
  • Nasdaq +0.1%
  • S&P 500 -0.7%
  • Russell 2000 -1.7%

Sector Round Up

The sectors were mixed too. 5 of 11 sectors ended Wednesday in the green.

At the top…

  • Utilities (XLU) +1.4%
  • Communications (XLC) +1.1%
  • Consumer Staples (XLP) +0.7%

At the bottom…

  • Financials (XLF) -2.7%
  • Materials (XLB) -3.2%
  • Energy (XLE) -5.4%
Image from IDB

Oil prices fell to a 15-month low, dragging the energy sector off a cliff.

Crude oil is trading near $68 per barrel this morning, a 17% decline from pre-bank collapse prices.

It was clear the bears were far more effective than the bulls. Despite the mixed close, only 24% of stocks advanced … 73% declined.

The Index

The latest PPI report showed inflation cooled, falling 0.1% month-over-month, which puts it at +4.6% year-over-year.

Fidelity opened up commission-free bitcoin trading to its millions of retail customers.

JP Morgan (JMP) says the Fed’s emergency loan program could inject $2 trillion in new liquidity into the markets.


A wise investor once told me, “the study charts is the study of human psychology.”

Today, let’s look at who’s buying and who’s selling…

SPY Daily Candles – Chart by thinkorswim

At the height of the October–February bull run, the press started pushing a new theory … They suggested The Fed could pull off “no landing.” That is no recession.

The idea brought a surge of speculative, risk-on buyers to the market.

Now, most of the buyers are underwater. And they’re praying they can just break even on their investment.

That created a huge zone of resistance.

As we see it, there is no clear path forward for the bulls right now. 


The second half of March is typically weaker than the first.

With the Ides of March behind us, we are building short positions betting on more downside in the near future.


*Low Float
^Open Position

*BLPH resistance at $7, support at $6
*AMAM support at $8
ELEV is on watch
PTGX support at $24, resistance at $26
DKS support at $140
DTC support at $6
SQSP support at $25
EMAN support at $1.20
^INDI support at $10
IOT support at $18
RELY support at $15
ARDX support at $3.50
GOTU support at $4.50
BGCP support at $4.75

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