US Market on 23 Mar 2023. Get Out Of Bank Stocks ?

US market on Wed (22 Mar) traded directionlessly until 2:00pm when the FOMC meeting was over with the press conference by Mr Powell, hot on the heels.

When the 0.25% interest hike was confirmed, market “reacted positively” initially.

It was afterall the much anticipated 0.25% and not the much feared 0.5%.

The “euphoria” proved to be short-lived as the press conference pressed on with Mr Powell further confirming that there would be no let down from the central bank in their fight to bring inflation down.

Personally I think, it is commendable that the Fed Reserves provides a clear direction of where they are heading without being ambiguous.

Doing so minimizes “speculations” of any sorts to be postulated by Wall Street to smoke-screen and “fool” the general public. Agree ?

By The Time Market Called It A Day :

  • DJIA : -1.63% (-530.49 to 32,030.11).

  • S&P 500 : -1.65% (-65.90 to 3,936.97). Worst performing index of the three.

  • Nasdaq : -1.60% (-190.15 to 11,669.96).

Respective Index’s Moving Average

Under such dire market conditions, it is beneficial to look at each composite index’s Moving Average.

13 Mar MA vs 22 Mar MA

Were you as surprised as I am with the respective Index’s moving averages ?

  • Dow Jones moving average - no significant change; index is still languishing below its 200-day, 50-day and 20-day moving averages.

  • S&P 500 index is met with resistance at its 200-day ma. Should the index closed higher by Thu evening, it just might end above its 200-day ma for the first time in a long time.

  • Nasdaq index surprised me by rising above its respective 200-day, 50-day and even 20-day ma. Must’ve been Wall Street’s returning focus on all technical stocks.

What Strategy To Adopt, Approaching 2nd Last Trading Day ?

Looking at US pre-market indicators, the three index looks like its ready to stage a recovery of sort.

Still too early to conclude because the index’s futures continuous to shift up, down, sideways until market opens to trade.

22 Mar 2023 - Latest interest hike

With the latest interest hike signed, sealed and delivered by The Fed, market now have “5 weeks” of breathing space before the Fed convenes for the next FOMC meeting in May 2023.

With attention seemingly turning back to Tech stocks - in particular Semiconductors, stock prices of $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ have been edging steadily upwards at least for past 5 days.

Most important I think is stay away from Bank stocks for the time being. Why ?

  • Gestation After Interest Hike

As with every interest hike, the bank stocks will need a bit of time to find its footing again.

Only this time, the time & effort needed will definitely be longer than the usual given that the latest bank-run turmoil is far from over.

With the latest interest hike, no one knows for sure how this will impact the smaller & medium size US regional banks ?

Don’t just take my words for it, $Wells Fargo(WFC)$ analyst Michael Schumacher seems to think along the same vein as well (see below !).

  • Turbulence Ahead in US, Europe, Hong Kong or Asean Market ?

Have you been observing the US market from Mon (20 Mar 2023); immediately after Sunday Credit Suisse rescue by $UBS Group AG(UBS)$ ?

Did you notice that both US Treasury Dept and The Fed have been trying to calm the market publicly ?

They have declared that US banking sector is stable, well-capitalized and the US govt will not hesitate to take further action to bring about stability.

There is really more that meets the eye. $First Republic Bank(FRC)$ is still in a state of flux (see below).

I think its share price will tumble when market opens on today (Thu - 23 Mar).

Will Europe market be rocked to the core tomorrow, as well ?

Reason being, Swiss Central Bank has also just raised interest rate by +0.5%; in tandem with Europe Central Bank (ECB) most recent interest hike of the same 0.5% (see below).

Will all the “tough stances” taken by respective EU or US central banks results in a “follow the sun” snowball effect affecting Hong Kong and ASEAN when trading resumes tomorrow Fri, 24 Mar 2023 ? Hmm….

  • Do you think US Banking sector is still far from stable ?

  • Do you think it is prudent to stay away from Bank stocks for the time being ?

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# 💰 Stocks to watch today?(28 Mar)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • KJ11
    ·2023-03-24
    TOP
    buy low sell high, but easier said then done. when it's actually crashing, most prefers to stand sidelines. When it rebounded, people then started buying with most ending up as buy high sell low. If u feel all the regional banks is gonna collapse, then stay away, else this maybe the golden opportunity to start nibbling. just buy the regional bank ETFs for diversification and to avoid single bank concentration, with the gov already stepped in to protect the regional banks, they will recover and probably be the best buy 3yrs down the road, my 2 cents.
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    • ALLinOne
      this is golden opportunity for someone
      2023-03-26
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    • lindsay877
      chance always accompany with risk
      2023-03-26
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  • BipBip888
    ·2023-03-27
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, thanks for reading my post.  Pls feel free to repost or share.  Appreciate it... Tks.
      2023-03-27
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  • Swamisugan
    ·2023-03-30
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    Great ariticle, would you like to share it?

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    • BK99
      good
      2023-04-01
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    • JC888
      Hi, tks for reading. Feel free to share/repost ok. Tks.
      2023-03-31
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  • YZ996
    ·2023-03-28
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    Great ariticle, would you like to share it?

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    • JC888
      Hi
      Tks for reading my post. Pls feel free to share or repost ok. Tks tks
      2023-03-28
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  • Moah
    ·2023-03-28
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, thanks for reading my post. Pls feel free to share or repost it. I appreciate you...
      2023-03-28
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  • Patrick Goh
    ·2023-03-29
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost... Tks tks.
      2023-03-29
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  • ninjakira
    ·2023-03-29
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    Great ariticle, would you like to share it?
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    • JC888
      Hi, thanks for reading my post.  Pls feel free to share or repost.  Tks again.  
      "Follow" me ? When my daily new posts are out, you'll be first to read it.
      Thanks again..
      2023-03-29
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  • MarcusChoong
    ·2023-03-30
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading. Feel free to share/repost. Tks.
      2023-03-30
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  • Pinarelli
    ·2023-03-31
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading my post. Pls feel free to share/repost.  "Follow me" ?  Tks.
      2023-03-31
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  • Hihihih
    ·2023-04-01
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    Great ariticle, would you like to share it?

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    • JC888
      Hi, tks for reading my post. Pls feel free to share or repost. Tks.
      Will u consider "Follow me"? Tks
      2023-04-01
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  • kian11
    ·2023-03-31
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    Great ariticle, would you like to share it?

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    • JC888
      Hi tks for reading. Pls feel free to share/repost ok. "Follow me" ?  Tks.
      2023-03-31
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  • delusion梦碎
    ·2023-03-23
    Life is an opportunity but it comes for those who extremely have the zeal to achieve it, I gained 5 BTC from an Initial investment of 2.5 BTC Which was insane.
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    • BK99
      good
      2023-04-01
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    • iNkwiziTs
      when did you 1st buy BTC & how did u gain 5 BTC over time while? curious to know.
      2023-03-24
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    • Bcbc
      Hh
      2023-03-24
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  • BorgPetty
    ·2023-03-23
    NVDA gave a good report after the market closed today and that should bode well with AMD and other semis that have similar business with both AMD and NVDA.
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  • ColinThorndike
    ·2023-03-23
    Only a matter of time before fomc will be reporting using 5 decimal places AFTER THE DECIMAL PLACE! A well-run company.
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  • 土龙修罗
    ·2023-03-25

    这篇文章不错,转发给大家看看

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    • JC888
      谢谢
      2023-03-25
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  • JC888
    ·2023-03-23
    Hi
    Tks for reading my post. Pls give a "LIKe" okie.
    Your rating is very important to me. Tks tks!!
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  • ychong87
    ·2023-03-27
    Great ariticle, would you like to share it?
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    • JC888
      Tks for reading my post and yr kind words. Pls feel free to share or repost... Tks tks
      2023-03-27
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  • BipBip888
    ·2023-03-24

    Great ariticle, would you like to share it?

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    • JC888
      Hi
      Tks for reading my post. Pls feel free to repost. Tks in adv...
      2023-03-24
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  • Jgoh
    ·2023-04-03

    Great ariticle, would you like to share it?

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    • JC888
      Hi tks for reading. Pls feel free to share. Wld u consider "Follow me" to read my daily new post ?  Tks.
      2023-04-03
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  • smurfette
    ·2023-04-02
    Great article and insights! thanks for sharing [Happy]
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    • JC888
      Hi, tks for reading my post.  Pls feel free to share or repost.  Would you like to "Follow me" so that you get first hand read of my daily new post ?  Tks Tks.
      2023-04-02
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