Regional Banks KRE Getting To Grips Its Not 2008
Updated
Let's make a sincere attempt to understand and address the "banking crisis". For those who have lost money, it's a true crisis. However, for those who have not yet lost money, it represents a necessary purification of the regional banking system.
Looking at the charts, it was evident well before the crisis occurred that a clear head and shoulders pattern had formed at the top. From a longer-term perspective, the situation remains bullish despite the 45% drop. While a further 20% decline may be possible, this could present a great opportunity to buy with excellent risk/reward.
From an economic standpoint, the current situation is not comparable to the banking crisis of 2008. However, the rise of zombie companies, which prioritize debt repayment over investment and maximizing profits, could become a concern. Junk bonds are signaling a potential zombie apocalypse, which we will discuss in a future post or video. It's important to note that tech companies like
AMZN and 
GOOG laying off employees should not be seen as negative since they are not zombie companies.
I advise my subscribers to view Real Macro and BKC like CHAT GPT. Ask questions and let the data speak for itself, rather than letting emotions and hunches influence your decisions. Successful trading/investing requires extracting information from the data rather than imposing feelings and guesses onto it. No one can predict the future, despite what so-called "experts" may claim. I urge everyone to learn how to be their own analyst in order to find great risk-reward setups & manage the trade accordingly.
Finally, I have no respect for self-proclaimed "experts". Like many newcomers, I too once listened to them and suffered significant losses. I don't want that to happen to you. Be cautious out there since it's a zoo.
Over and out!
Looking at the charts, it was evident well before the crisis occurred that a clear head and shoulders pattern had formed at the top. From a longer-term perspective, the situation remains bullish despite the 45% drop. While a further 20% decline may be possible, this could present a great opportunity to buy with excellent risk/reward.
From an economic standpoint, the current situation is not comparable to the banking crisis of 2008. However, the rise of zombie companies, which prioritize debt repayment over investment and maximizing profits, could become a concern. Junk bonds are signaling a potential zombie apocalypse, which we will discuss in a future post or video. It's important to note that tech companies like
AMZN and GOOG laying off employees should not be seen as negative since they are not zombie companies.I advise my subscribers to view Real Macro and BKC like CHAT GPT. Ask questions and let the data speak for itself, rather than letting emotions and hunches influence your decisions. Successful trading/investing requires extracting information from the data rather than imposing feelings and guesses onto it. No one can predict the future, despite what so-called "experts" may claim. I urge everyone to learn how to be their own analyst in order to find great risk-reward setups & manage the trade accordingly.
Finally, I have no respect for self-proclaimed "experts". Like many newcomers, I too once listened to them and suffered significant losses. I don't want that to happen to you. Be cautious out there since it's a zoo.
Over and out!
Note
I forgot to add that I was calling for a short in banking in both XLF and EUFN back in DEC 2021 way before any of the "experts" came out down -45% to tell you all about it.
Note
While I did say the current Banking situation is not 2008 I did point to the fact it had room to push lower. and it did.Another push lower will bring it into a key area.
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