Pausing rate hikes until the financial stability concerns are resolved (which takes time).
Which bank stocks are you buying?
- Thread starter cesfx
- Start date
I agree. But now that the ECB just went full-bore with the 50, that emboldens the FOMC. I think they are gonna' pull a 25 bps move, even though all signs point to a pause. They need some damned patience!
This makes me like the short even better. If they don’t hike then I’d cover.
Reporting back on that recent Credit Suisse trade. The stock was held for just under 20 hours, and then the price action indicated momentum was dissipated from the key announcement. So I exited yesterday an hour before the start of RTH, made about 20 %, or about 1 % per hour.
I suspect some banks may need to hike their interest rates significantly to atttact depositors, but if any of us see them offering one percent per hour it would be major danger sign for the whole sector! Today once again FRC melted back down and a few others not looking good. It is such a volatile but potentially lucrative sector right now. Hopefully several of us can take advantage with some nimble, well-timed actions when the charts so indicate. But the headline risk is exceptionally high, all can turn on a dime.
I suspect some banks may need to hike their interest rates significantly to atttact depositors, but if any of us see them offering one percent per hour it would be major danger sign for the whole sector! Today once again FRC melted back down and a few others not looking good. It is such a volatile but potentially lucrative sector right now. Hopefully several of us can take advantage with some nimble, well-timed actions when the charts so indicate. But the headline risk is exceptionally high, all can turn on a dime.
Stopped out this morning.
Damn. At least it was tight.Stopped out this morning.
I wouldn't own a banks here. I don't know about European banks but here in the US there are a lot of banks that have severe HTM losses thanks to poor interest rate hedging & they are one rumor away from a bank run and collapse.
And then there is the mystery of SCHW collapsing immediately and just staying between $50 & $60. Why is Schwab still 20-30% lower if everything is okay? In 3 days it went from $76 to $45.
And then there is the mystery of SCHW collapsing immediately and just staying between $50 & $60. Why is Schwab still 20-30% lower if everything is okay? In 3 days it went from $76 to $45.
That was pretty good advice. Did you take it?