I’ve been warning how bad things could get for banks since the end of 2022…
I went so far as to say it will be the worst sector in the market in the first quarter of 2023. Well, we’re five trading days away from the end of the first quarter and…
That’s the Financial Select Sector SPDR Fund (NYSEArca: XLF), down about 10% on the year through Friday afternoon and 16% off its peak in early February.
Things are even worse if you take a look at the SPDR S&P Regional Banking ETF (NYSEArca: KRE), down about 28% on the year, also through Friday afternoon…
As you can see, the Financials sector is taking a beating this year after the collapse of Silicon Valley Bank and Signature Bank.
Did you see what happened to Deutsche Bank this morning? Down 14% premarket and as much as 8% intraday… It’s down 25% this month and over 6% the past week as of Friday afternoon.
Gee, I wonder who could have called that last week on Crush the Open?!
So like I’ve said before, if you’re thinking about bottom-picking these bank stocks… buyer beware.
Because I expect there will be plenty more carnage to come, and Deutsche Bank AG (NYSE: DB) could easily fall down to prior support near $7 (the pink line below).
There are better ways to make money in the stock market than trying to bottom pick stocks that might have a ways more to fall, and could take a long time to recover.
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.
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Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. Insiders Loaded Up on This Bank…
The mainstream media is finally reporting on something Lance Ippolotio warned me about a few weeks ago…
That banking insiders conveniently sold off their shares before the banking crisis. You can see the proof here.
But that’s not what matters… I’m writing to you today because Lance just spotted transactions that are almost unbelievable.
A group of insiders is going “all in” on one banking stock.
I suspect that, like last time, something is brewing…
