March 20, 2023

Markets:

U.S. stock futures were flat on Monday as investors assessed the state of the global banking system after the Swiss government engineered a forced takeover of Credit Suisse by UBS, marking the latest effort by governments around the world to stifle a crisis threatening the banking sector.

Regional banks were still under pressure to shore up their deposit bases in the wake of the collapse of Silicon Valley Bank earlier this month. Wall Street expects more actions may be needed to restore confidence in the banking system after U.S. regulators backstopped SVB’s uninsured deposits and offered new funding for troubled banks one week ago.

UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion, with the combined bank to have $5 trillion in assets. Credit Suisse shares were down 21% last week. Shortly after UBS announced its takeover deal, the Fed announced it had joined with other central banks in a joint liquidity operation. The group of central banks — including the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank — agreed to increase the frequency of their U.S. dollar swap line arrangements from weekly to daily.

European stock markets reversed higher Monday morning as investors digested news of UBS’s takeover of Credit Suisse.

Shares of Australian gold miners surged on Monday morning as gold prices traded near a one year high, bucking the wider trend in Australian markets.

Portfolio:

What an outstanding year thus far.  We enter the new trading week holding only set-ups in YEXT, TSLL, BAC, and DAKT.  We will absolutely be unloading this week and positioning ourselves for the coming month.  So much happening this week, led by the Fed's decision on Wednesday on hike or no hike.  Technically, look where we stand and what we continue to remind everyone of.  S&P remains in a up channel, continues to fight off the bears, and we respect the price action.  3890 is the line in the sand we continue to point everyone too.  Be ready today and let's have another outstanding week.  Canot stress enough what is brewing for this market and the opportunity that could be presented to us should this continue to build.  Could be an outstanding 12 month period ahead for technical traders.  We continue to prove this, hope folks are noticing.