📈Banks woes continue too....

Bank woes continue to be the biggest issue for the global markets. Over the weekend one of the top 20 largest banks in the world failed and had to be bailed out. Credit Suisse was essentially forced to merge with United Bank of Switzerland. It was known that they had issues previously but the scope of those issues was grossly underestimated. Currently the stock is trading slightly above its buyout price of 75 cents.

Friday First Republic Bank (FRC) stated that the 30 Billion injection of deposits was not enough and they needed to raise capital. We expected that capital raise to come over the weekend. It never came. By 10:30 am today we saw the stock getting weaker. By 12:00 pm a statement was issued that JPM and other banks were working on a plan with First Republic. This was not welcomed news because it shows that the bank had failed to generate favorable terms on a capital raise. The stock lost approximately half its value on the news. Dropped from $20 to $12 in less than 10 minutes while it was halted over three times.

Regional banks (KRE) are currently sitting on major support. Some are benefiting from the current environment. The important takeaway from the chart below is that sector has not made a lower low since last week.

For more details into the banks, the key support and resistance levels on the indexes and what stocks looks ready to break out watch the video below.

Wishing Everyone Massive Success in 2023 🍾