Banks Keep Breaking Down

JC Parets
March 5, 2024

Banks don't stop falling.

About a year ago, we saw a few tiny banks that no one has ever heard of disappear, and the market moved on just fine.

Is this time going to be like that?

Look at Regional Banks breaking down vs both Large-caps and Small-caps.

So, no matter what you compare them to, Regional Banks look terrible:

New York Community Bancorp was down another 23% today and fell to new all-time lows.

Will there be more?

Will it actually matter to broader markets this time?

We shall see.

But what I do know for a fact matters, because it's worth $3 Trillion, not just $3 Billion (like NYCB), is Apple breaking down to new multi-year lows relative to its peers:

Apple hit new 4-month lows today as this downtrend on an absolute basis continues.

Inflation measures remain elevated. And I don't mean the CPI or the dot plots. I'm talking about the bond market.

The bond market keeps pricing in higher inflation, rates remain elevated, and now energy is catching a bid.

Apple doesn't like that, as you can tell.

Neither do regional banks.

So what else are we shorting?

What are we buying?

We discussed it all on tonight's LIVE Monthly Charts Strategy Session.

Premium Members can check out the replay here:

Our LIVE Monthly Strategy Sessions are designed to help us zoom out and identify the direction of Primary Trends.

You can access tonight's LIVE Video Conference Call by signing up for our recent Technical Analysis Bootcamp.

Check that out here and get caught up right away.

Please shoot me a note with any questions you may have.

We had a lot to discuss tonight.

Check it out!

JC

 

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