Joel Elconin – Silicon Valley Bank (SIVB) Contagion Fears For The Financial Sector Overshadow The Jobs Data Today; USD, Yields and Markets All Dropping
Joel Elconin, co-Host of The Benzinga PreMarket Prep Show and Editor of The PreMarket Prep website joins us to discuss the Silicon Valley Bank issues brought to light this week. This has caused financial stocks to get hit as contagion fears dominate the markets. We are also seeing the USD and yields pull back as it also has lower Fed rate hike expectations. This news in the financial sector has completely overshadowed the strong jobs data from this morning.
Click here to visit the PreMarket Prep website to follow along with Joel’s market commentary.
Thanks guys! The FDIC may be trying buy the problem out quickly and attempt to hush this story up. I say it is up to all of us to shove this in the face of the ‘effing fedsters … this all stems from the ‘
transitory’ lie, IMHO.
+1 Agreed Dan.
Garry Tan 陈嘉兴 @garrytan 12:14 PM · Mar 10, 2023 – Twitter:
“30% of YC companies exposed through SVB can’t make payroll in the next 30 days.”
“If you or your company are affected, I recommend that you reach out to your local congressman to get this on their radar TODAY. Now.”
FREAKY FRIDAY………AGAIN……
Something always happens on Friday……
Big Bank failure in Calif…… just the start they say…..
Yes indeed OOTB. Bankster fallout on this particular Freaky Friday, further demonstrating the cracks under the surface in the financial sector.
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U.S. Stocks Fall As Bank Sector Comes Under Pressure
Liz Moyer – Investing.com – Mar 10, 2023
“U.S. stocks were falling as bank stocks come under pressure, while new data on jobs alleviated concerns about aggressive interest rate moves by the Federal Reserve.”
“SVB Financial Group (NASDAQ:SIVB) was closed today by California banking regulators after failing to raise capital. The shares were halted all morning on Friday after falling 60% on Thursday. The bank, which has a high profile in the venture capital world, was squeezed by rising interest rates. It announced a plan to reorganize its portfolio by selling securities at a loss and selling more shares to raise capital.”
“Its struggle was spilling over to other bank stocks though that has eased up about an hour into trading. The KBW Nasdaq Bank Index was down 1.9% on Friday.”
well gold up nicely. Sector equities doing their regular thing underperforming and losing most of their gains including the generals which had a good initial pop.
No rush to get it. Terrible time for those with the penny arcade accumulations.
Herstatt Bank went bankrupt in 1974 (Herstatt crisis): https://tinyurl.com/4nk2cyte.
Herstatt Risk is the risk that a counterparty (or intermediary agent) fails to deliver a security or its value in cash as per agreement when the security was traded after the other counterparty or counterparties have already delivered security or cash value as per the trade agreement. The term covers factors incidental to the settlement process which may suspend or prevent a trade from completing, even though the parties themselves are in agreement, are acting in good faith, and otherwise competent to perform.
April gold up $37.00……………Hui up a whole 2.66 points. Beginning to think Joe might be right.
Gold basically holding water for months. Now it’s ticking up as it should with all the inflation, bank failures, blah blah. Perhaps over 1900 on its way to recent high while sector equities in a deep funk underperformance.
Watching to see that change from persistent underperformance to at least keeping pace if not outperformance in particular with the generals first, nem, abx aem etc.
They had a good start today and then wilted while gold maintained and added to its opening price.
If/when that happens as in the past, there will be plenty of time to get in.
This week’s dump with spx on all the banking noise is yet to be determined as the end of the world retest of last year’s lows, or if there’s yet another attempted rally to another lower high above 4000+
May would be perfect for that to happen, for a sell in May and go away in second half of the year.
Good thoughts. Your May sell could be a good time for the sell on SPX. It’s confounding though. Yardini expects 4500-4800 spx at the end of the year. I also remember him calling for the end of the world at Y2K. I’m partial to David Rosenberg who still says we’ll be in a recession by end of 2nd quarter. https://www.bnnbloomberg.ca/video/avoid-stocks-we-haven-t-seen-the-lows-barbell-between-treasury-bills-long-bonds-rosenberg~2644022?jwsource=cl . Then, there’s Louie Gave who doesn’t see a recession. https://www.youtube.com/watch?v=HsXKySIwFgY There will be melt-downs so where to put one’s capital is the question. Energy, gold, bonds, cash?????
I subscribe to your May selling thoughts. If a recession actually appears as per people like David Rosenberg, May could very well be the final high for some time. There are those like Louis Gave who thinks talk of a recession is a red herring. He’s bright but I like Rosenberg’s thoughts on that line. Yardini is calling for an end of year spx of 4500-4800. However, I remember he also thought the world was ending with the Y2K dilemma which never appeared. So many experts.
Gold began last year at about 1830 which is about 2% below the current price despite all those interest rate hikes that Joe and countless others were, and still are, so afraid of. If you would have asked Joe and friends 2-3 years ago where gold would be after such rate hikes and the dollar at 114 they would’ve guessed around 600-800.
Yes indeed the charts are useless to the clueless which is why the vast majority cannot withstand corrective action that doesn’t threaten the bigger picture. If Joe, Doc and jony understood what they pretend to they wouldn’t be so vocal only at lows and so silent around highs.
gold doing just fine, down the 2% or so just as you say. Been saying gold holding water for more than a year.
It’s your goofy sector underperforming equities that you keep accumulating that are in a very dee and depressing hole. You tout what you’re not buying.
I sold out and posted with the jubilation in late Jan. I distinctly remember you doing the opposite and it wasn’t gold you bought and touted after reading the charts LOL
Your constant whining and anger comes from your confusion and missteps. I’m in and out of the heavily traded stuff all the time and my strategy with the smallest, thinly traded plays is obviously beyond your comprehension.
The fact is, you have a perfect record of being maximum bearish when you should be buying. The miners spanked gold in Q4 and you missed it. Now we have a huge shakeout against an extremely bullish setup aided by COT reporting going dark and you’ve dutifully fallen for it… again. LOL indeed.
https://stockcharts.com/h-sc/ui?s=%24XAU%3A%24GOLD&p=D&yr=1&mn=1&dy=0&id=p26935460415&a=1371066106
Matthew, you’ve posted so many bullish setups that turn to bull shit that it’s hard to keep track.
You probably think that’s the case with SOXX:SILJ but you’d be wrong. It has been topping for close to a month. The slightly higher highs recently did nothing at all to improve the chart and Thursday’s price candle by itself made Friday’s drop highly unsurprising.
https://stockcharts.com/h-sc/ui?s=SOXX%3ASILJ&p=D&yr=1&mn=6&dy=0&id=p60629237473&a=1350381340
This should be no surprise to anyone………………….trillions of bonds, code name for DEBT………..issued at 1 or 2 percent over many years………..now have the plague……….when inflation is rampant at 6 to 8 percent…….who in their right mind would even think of buying this dog dung while this historic bond bubble is just starting to unwind………………..so hurry up Jerome get that inflation down so your mountain of garbage paper might look attractive again…..the pig needs more lipstick…………..to say that the FED is way behind the curve is being way to polite…………they are out of control and just because they tell you they have their hands on the wheel that somehow it will all be fine and orderly ! Nouriel Roubini who is called Dr. Doom, is worth listening too, as he is a better raver than I am !
…….wonder why people are reaching for gold today?………hmmmm !!
Normalization of relations between Saudi Arabia and Iran!
https://english.news.cn/20230311/21399e5cde9b4606942e3f0f05144320/c.html
Hi BDC … You & everyone else listen to this, worth it IMO.
irishtony
11 hours ago
Great new’s for the Middle East , not so good for the US / NATO / ISREAL… IRAN / SAUDI , Chinesse brokerd deal . The Duran 32 minutes long , & well worth a listen.
Some really big thoughts in this interview. Powell possibly being forced to resign?? https://www.youtube.com/watch?v=vU1g7ZUQkWI&list=TLPQMTAwMzIwMjML1lb4tTZYyQ&index=3
Chris Whalen says Fed needs to drop rates beginning Monday Morning as well as open Discount window or crisis will grow in banking. Important info.
Back in the day (October 1987) Peter Lynch & cohorts made a beeline for DC to work things out. He ran Fidelity’s highly successful Magellan Fund and survived that short-lived black hole. It’s questionable whether a great buying opportunity will ensue this time, as that one had turned into. Too many anchors. Not enough boats.
Do you have a large amount of cash sitting in the bank , take out 25% + & buy PHY. Gold & Silver.
Michael Oliver knows what’s up…
https://kingworldnews.com/michael-oliver-one-of-the-most-important-gold-updates-msa-has-ever-issued/
I get the impression that some gold shorts that think that gold is just too over priced………..are running for the hills today…………..it makes me laugh when all the bankers are now sh*ting in their shorts !
Agree with JOEL…………powell is going to do some head scratching !!!