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💾 Wells Fargo & Company Turns Bearish | Crash AheadWhat we are seeing with these banks are the side effects of massive monetary expansion. This is the result of the Covid money printing fest. We will soon enter the withdrawal phase ... Right now the banks are deep into the headaches. ✔️ Wells Fargo looks pretty bad. While last week you could say everything was fine based on the chart signals, this week nullifies months and months of recovery. Of course, there were many signals pointing to what is happening now from way back... If you track this chart you would be able to tell. The RSI and MACD peaked 2021, both have been building a very strong bearish divergence. The trading volume continues to decline and we have Elliot Wave Theory as well which calls for lower prices in the form of a correction. Let's look at the present time. Here is the chart: ✔️ The RSI jumped off a cliff. Trending lower strong. ✔️ This weeks candle moved below EMA10, EMA21, EMA50, EMA100, EMA300 and MA200; all in a single candle. ✔️ The highest bear volume bar is present this week since June 2022. This can be the start of the (C) wave in a classic ABC correction. The wave count is marked on the chart. The question comes up again, will Bitcoin crash together with the banks? It is possible but the charts are very similar. While these banks have gone down by 30%-40%, Bitcoin went down by 77% and they are going through the same pattern. Where these banks are headed is where Bitcoin has already been at but it can still go lower though. The things is that Bitcoin should work as an alternative to decaying banks, it was created to protect people for situations exactly like the one we are seeing now, to protect people from another 2008. We have to wait and see if the experiment will work. My hopes are very low though for these banks though. It is already being reported that the SIVB people paid their bonuses and did their insider trading before crashing everything... People are bound to get tired at some point. Namaste.
NYSE:WFCShort
by MasterAnanda
💾 Citigroup, Inc. | The Chart Looks Different But Still BadCitigroup doesn't look as bad as BAC or JPM as it has already been going down strong since June 2021, it also didn't recover much from the 2009 crash and so there is less room for a crash... But it is still quite bearish, the chart! Here is the chart: Maybe this people are more down to earth and this is why their stock is doing worse, they know whats coming, their customers are more aware and so they have been selling for a long while. The others might be in the clouds. What we went through with the capitulation phase within the Cryptocurrency market and the November 2022 lower low the traditional financial markets still have to go through, we went through the process first. ✔️ Citigroup moved above EMA10 in December 2022 and after struggling a lot it managed to move and close above EMA50 last week. This week this is all lost and we have a high bearish volume close below this very important level. ✔️ Citigroup now trades below all moving averages, a very strong bearish signal. ✔️ What the chart is clearly saying is that a continuation of the bearish trend is likely to take place. Unless a miracle happens... Something like Trillions of dollars being produced out of thin air, this is like to crash as well with the rest of the giant banks... This is what the chart says. Bearish all across. The monthly chart, the main one above, is not as weak but still trading below EMA10 yet this month is still young. I am getting mixed signals on the monthly chart. The weekly chart reveals whats to come. When a timeframe is not clear, we can go to lower timeframes to get a better picture. Prepare yourself. Namaste.
NYSE:CShort
by MasterAnanda
6
USDC(Stablecoins)👉🏻 Bankfalls 👉🏻FED Regulation 👉🏻 CBDCUSDC USDC - US, peg lost Price is recovering and is now $0.95 This happened because Silicon Valley has a big problem, i will not go into details of this problem and how much collateral is lost. The fact is that the price of USDC was dropping to $0.86 and the price has not recovered yet to 1$ I am writing this post on Sunday because tomorrow is Monday and there will be an emergency FED meeting and the most interesting Scenarios : 1. the USDC is recovering and all is well, but confidence in this stablcoin is lost. Because, I will note so far the price has not recovered, ok there is a liquidity gap in steiblocoin pairs, but here is a different situation. 2. What if the price doesn't recover What to do? -Where to move to USDT? There is a scenario, when most of people go to USDT and then collapse the exchange rate of USDT (apocalypse Scenario). - Go to cash - Speculative option (not financial advice) Short USDCUSDT using Bitcoin Inverse contract with 1x leverage. The underlying asset for collateral will be BTC and the trading pair will be to the dollar. Of course you will pay a funding. If BTC goes down, we will have a profit from the short that will compensate for the downside movement. If it goes up, and since the underlying asset is BTC, then at closing the position the price in dollars will be exactly the same. We can look at the chart of the UST The decline to 0.65, recovery to 0.92 and then you see what happened. Of course, these are two different companies, different approaches, different backgrounds. USDC is much more serious But if you have some large part of the USDC you decided to speculate and earn 10%+ and you are not calm, shouldn't you just get rid of that asset without putting your deposit at great risk. Any Stablecoin is now a risk you take on yourself. Considering perfect storm scenarios. And where it all goes, and the direction this CBDC is headed . As the FED says it doesn't see any advantage in digital assets Why the Fed hates cryptocurrencies and especially stablecoins www.cnbc.com Required reading👆🏻 Many banks involved in cryptocurrency transactions were caught twitter.com What's next This is probably the first time you will see this company FedNOW - is a service developed by the Federal Reserve for depository institutions in the United States. It will allow individuals and businesses to send instant payments. Banks will be able to create products based on the FedNow platform. FedNow is scheduled to launch between May and July 2023. In this case you don't need banks when you have a FED _federal reserve system account FedNOW will provide the end user wallet in FED "A dollar in CBDC form is a liability of the central bank. The Federal Reserve has to pay you back." The plan became clear? This is all to finish off both banks and most of the crypto market will be the regulation of the cryptocurrency market I'm all about regulation in this article 👇🏻 The show must go on Tomorrow is Monday, opening of U.S. markets, urgent Fed meeting, it will be fun. I want to add a positive, if there will be a collapse, and it will happen sooner or later, we will see on the market will be inefficiencies on which arbitrage teams, and other market participants will be able to make big money. Our team has been tracking some inefficiencies since 2019 the result was on the falls in March 2020 and May 2021. What will happen to bitcoin. We can see that when the USDC went down the price of bitcoin relative to it became higher than to the pair USDT. Bitcoin is digital gold, at the beginning of the digital age. Crisis is always a time of opportunity. Best regards EXCAVO
KRAKEN:BTCUSD
by EXCAVO
7
SBNY Signature Bank next to Collapse? If you haven`t bought those 5X puts: Then you should know that Signature Bank's stock experienced its worst day on record following the collapse of SIVB Silicon Valley Bank and SI Silvergate. Due to high volatility, trading was suspended earlier in Friday's session, and the stock has continued to decline for five consecutive sessions. This downturn was triggered by the closure of Silvergate, the second major bank serving digital assets companies, as well as the regulatory shutdown of Silicon Valley Bank, the 18th largest bank in the United States. It has been reported that Signature Bank had exposure to FTX. I am still bearish on the company and i believe it will reach the $34 - $63 area soon! Looking forward to read your opinion about it!
SShort
by TopgOptions
You decide - SVB Financial collapse - who is to blame?A lot of talk on who is to blame for the SVB Financial collapse – this is the first big casualty of rapid rate hikes and tighter policy, but who is to blame and what are the next steps? -SVBs management – they invested short-term deposits in longer term fixed income assets – where a large % of its $120b securities portfolio lacked any kind of interest rate hedge (payers swaps were clearly needed) -SVBs management – In the past 8 months SVB had no risk manager - fortune.com - no one knows how they efficiently managed risk -SVBs management – the accounts showed they held $91b of its $120b securities in its HTM (assets Held to Maturity) book – these are assets they intend to hold until maturity but the accounting rules detail, that they don’t need to mark-to-market the moves in the underlying and report the ballooning losses – which again were not hedged. -SVB deposit mix - 93%+ were above the FDIC insurance limit – this makes depositors v sensitive to any capital concerns at the bank -SVB deposit mix - VCs had a rapid cash burn, as projects they back are typically driven by changes in interest rates (think Net Present value and Internal rates of return) – depositors took cash off SVB’s balance sheet to fund operations – SVB subsequently had to sell assets as their liabilities fell – we then see realised losses from buying securities at much higher prices. -Short sellers/investor base – shorts had an eye on unrealised losses from the worsening asset quality for weeks – the selling accelerated when the CEO/CFO/CMO disclosed they’d sold a chunk of stock on 27 March – it was over when the SVB took a $1.8b hit on its AFS securities available for sale on Wednesday – management sold $21b of its $28b book and announced a $2.25b in equity/debt raising - investors knew with conviction that depositors were fleeing – who supports a raising when liabilities are falling – no one sensible, raising pulled -The Fed - failing to know such a shift in rates would impact banks asset quality when its primary function is financial stability. -Regulation - Basel 3 - banks being forced to buy govt paper against deposits - v low risk weighting (perhaps required a hedge Hard to pinpoint this on one aspect IMO - I think there is a perfect storm going on – a lack of hedging of interest rate risk was clearly a dominant factor behind this. Top down this is a function of rapidly tightening monetary policy and the impact this had on both the asset quality and liability side of the balance sheet – we should recall SVBs model is not the same as others in the banking space, so its hard to say this is systemic – still we wait for the outcome on next steps on how deposits over $250k will be dealt with – we’re hearing they may get 50% back initially but a buyer would be the best solution The issue for regional/smaller banks comes if is we see some sort of haircut on the deposits claim over $250k – that could see a loss of confidence in holding deposits with other smaller banks names – we shall hear more soon, but broad contagion through the financial system seems unlikely, but it is a possibility given nearly 1/3 deposits in the banking system are uninsured – any bank with a large asset base and low equity are in the spotlight As said Friday this could be a nothing burger or have real impactions on economics - the big issue happens this week if we see no clarity on how depositors are dealt (seems unlikely) with and we get a hot CPI print
AMEX:KRE
by Pepperstone
31
📜 HISTORY LESSONS: When Banks Go Bust ..... Open war on Bitcoin amidst Banking worries: watch today's video here for all details: What happens when Banks go bust? The historical incident of Cyprus: 2012–2013 Cypriot financial crisis Banks in the small European nation of Cyprus go bust. Cyprus had 2 main banks: The Cyprus Popular Bank ('the Bad bank') was the second-largest banking group in Cyprus behind the Bank of Cyprus until it was 'shuttered' in March 2013 and split into two parts. A one-time bank deposit levy on all uninsured deposits there. Anything over the insured 100k was simply taken away! There also was a seizing of possibly around 48% of uninsured deposits in the Bank of Cyprus (the biggest one ie 'the Good bank') . What happened to Bitcoin then? It PUMPED for the first time to 1,200 (from around 100$ before the crisis). For reasons you probably understand, Just sharing this fact with you.. hope you find it interesting. I am just sharing a fact, everyone can take decisions for themselves. Wish you all luck, The FXPROFESSOR PS. I happen to be from Cyprus. Awesome place to live and economy has never been better here ever since our little 'Great Reset'. Come visit me in Limassol sometime: www.celebritycruises.com chatgpt on Cyprus haircut: The Cyprus banking crisis occurred in 2013 and was a result of the country's banks investing heavily in Greek government bonds, which lost value during the European debt crisis. This led to a significant reduction in the banks' capital, making them vulnerable to collapse. The Cypriot government requested a bailout from the European Union (EU), which came with a condition of imposing a "haircut" on bank deposits. The haircut, which was essentially a tax on deposits, was a measure designed to raise funds to stabilize the banks. Depositors with more than 100,000 euros in their accounts had to pay a percentage of their deposits to the government, while those with less than 100,000 euros were spared. This measure caused a lot of controversy and anger among the Cypriot people, as many felt that their hard-earned savings were being taken away without their consent. The impact of the haircut on people's deposits was significant. Depositors with more than 100,000 euros lost a substantial portion of their savings, with some losing up to 60% of their deposits. This caused a great deal of uncertainty and anxiety among the Cypriot people, as well as a loss of trust in the banking system. The Cyprus banking crisis and haircut had significant consequences for the country's economy. Many businesses and individuals suffered losses, and there was a decline in confidence in the financial system. The crisis also highlighted the interconnectedness of the European banking system and the need for greater regulation and oversight. In conclusion, the Cyprus banking crisis and haircut had a significant impact on people's deposits and the country's economy. While the measure was necessary to prevent the collapse of the banking system, it caused a lot of controversy and led to a loss of trust in the banking system.
BITFINEX:BTCUSDLong
by FX_Professor
10
SVB Crashing and burning to $33 - Here's why SVB Financial group has had a major Inverse Cup and Handle forming over the last few years. Today it broke below the brim level and has confirmed strong downside to come. Price<200 - Bearish RSI<50 - Bearish Target $33 WHAT HAPPENED? Silicon Valley Bank's parent company, SVB Financial Group, saw a 60% drop in its shares after launching a $2.25 billion stock sale to recover from declining deposits from tech start-ups. They admitted to losing about $1.8 billion on the sale of securities, which led to a huge loss in their market capitalization. This event also caused other financial stocks to decrease in value, highlighting how rising interest rates can affect net interest income at other banks. On Thursday, the four largest US banks lost a total of $52.4 billion in market value.
SShort
by Timonrosso
SIVB Meltdown- Canary in the Coal mind?Today we saw a systemic risk in the financial sector. The regional banks were hit extremally hard and as a result the Major banks saw sell side liquidation. Where there's one cockroach, there's usually another. Risk in the banking sector is the worst type of risk investors can ask for. Credit liquidity crisis is not something to mess around with. SIVB looks like its in serious trouble potentially being exposed to fraudulent crypto loans that will likely default as well as failed speculative startups in the tech and health care space.
S
by Trading-Capital
Any chance for a $SIVB Revival?No surprise we saw a huge knife down that met with hard resistance at ~$82.77. This price point acted as a huge support back in 2016. Despite the NFP numbers, there should be a relief bounce for the stock, but any follow-through to break that resistance during the trading day could introduce a retest of the monthly high in 2000. You can be certain that Silicon Valley Bank is at risk of losing capital to the many companies that will be looking to withdraw (keep in mind that the struggling tech market means fewer deposits in SVB). I have no specific positions on $SIVB and see a very long road to recovery here. Their 2.3B firesale in new shares would cause extreme dilution to the stock, which was needed from their horrible positioning just before interest rates increased with their $21 billion bond portfolio having a yield of 1.79% and a duration of 3.6 years compared to the 3-year treasury yield of 4.71%. What happened today is a harbinger of what's to come for the entire market.
S
by gigavest
3