Bank Stocks Are Getting Crushed, Just Like I Predicted

by | Mar 13, 2023 | Market Analysis & Education

I’m in the business of predictions and projections… And just like you can’t win every trade, no one gets everything right. 

But I do get a lot of them right, and when I hit on a big one, it’s good to revisit. And one of my biggest projections for the first quarter of 2023 was right on the money…

Back on Dec. 28, I was on the roundtable with Roger Scott and Garrett Baldwin when I said bank stocks would be the worst sector to be in this quarter. I also said we’d see banks fail and at least a mini financial crisis, and what do you know… three banks, Silvergate, Silicon Valley and Signature, have now failed, and bank stocks are getting flattened, particularly smaller regional banks.

I also said banks would have all kinds of blowups as we enter the next phase of this ongoing recessionary bear market. 

Check out this clip from Dec. 28, 2022…

How did I know this would happen? Because I’ve seen it before. This isn’t the first and it won’t be the last time things like this happen. 

Now over the past month, the Financial Select Sector SPDR Fund (NYSE: XLF) is down 14% (see the chart below) while some of these regional bank stocks are down 50% and 60% on Monday alone… 

And like I said Friday, what this means for us is we have to recalibrate our risk exposure because now we’ve seen a real black swan blowup. 

When all this stuff starts to unwind, it creates more volatility. In fact, more than 30 banks have been placed under trading halts as people freak out. So keep your head on a swivel and trade accordingly. 

I’ve been tweeting a lot more… charts, news reaction and general trading information, so be sure and give me a follow on Twitter @jeffzan. 

You can also join my free Telegram channel, where I share market insights in real time throughout the week, articles, videos and more!

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. 

P.S. By Friday, This Could Happen

This week, there’s something obscure happening in the stock market…

The S&P 500 is undergoing one of its “rebalancings.” 

What that means is that Wall Street institutions will be forced to buy shares of certain stocks…

And tank the shares of others…

How does it work? And how can you protect yourself?

Go Here and I’ll give you exactly what you need to know. 

It all starts at 1 p.m. ET on Wednesday, March 15… 

And I’m Holding a LIVE Session to Cover It

WRITTEN BY<br>Jeff Zananiri

WRITTEN BY
Jeff Zananiri

What to read next