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Banking Crisis Contagion Erupts in Europe Where Fed Can Do Little 3/15/23

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The bloated body of Credit Suisse floated back to the surface this morning, throwing Europe into chaos. CS, by the way is a Primary Dealer, so this is a Fed problem too. I have pointed out through the years that only a minority, now 9 of the now 25 Fed Primary Dealers are US based. The rest are furriners, including 9 in Europe including the UK. 4 are Canadian. 3 are Japanese.

So whatever impacts Fed policy here, impacts the world. And it doesn’t take long, especially in the age of instantly public web based communication.

This is the result this morning on the hourly chart of the ES, 24 hour S&P futures. The threat that we saw yesterday that this pattern would turn bullish for both the short term and intermediate term has, for the time being, been eradicated.  A tentative 5 day cycle projection points to 3775-80. A 2- day cycle projection points to 3795. Either would break the lows and would re-establish a pattern of lower highs and lower lows on the hourly cycles. Bailout or Not, Stock Traders Are Should Give the Fed, Treasury, and FDIC the Finger March 13, 2023

-jmqi

The hourly chart of the 10 year Treasury yield shows a resumption of the buying panic. But yield must trend lower, and thus prices higher, for the bank run crisis to be self mitigating. It remains to be seen if that will unfold as such. Systemic Meltdown Under Way As Dead Bodies Finally Start Surfacing March 12, 2023

-jmva

BTC is apparently now seen as a safe haven by some. There’s an LOL. A breakout above 26,500 would have a conventional measured move target of 37,500. There’s a current 9 month cycle projection around 26,000- 26,500. That’s done. Pivotal point here.

Here’s the daily chart.

-jmyv

Gold is also getting a strong safe haven bid. The hourly chart base breakout has a target of 1980-90. But the implications of a long term potentially bullish setup are much greater.  Gold Works On High Base March 14, 2023

-jm-o

For moron the markets, see:

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