March 24, 2023

Markets:

Stock futures fell Friday as a plunge in shares of Deutsche Bank in Europe raised investor fears about the banking sector once again.

Deutsche Bank U.S.-listed shares slid about 11% in the premarket after the the German lender’s credit default swaps jumped, but without an apparent catalyst. The move appeared to raise concerns once again over the health of the European banking industry. Earlier this month, Swiss regulators forced a UBS acquisition of rival Credit Suisse.

Shares of major U.S. banks were also under pressure. Bank of America, JPMorgan Chase and Wells Fargo fell more than 2% each. Meanwhile, Citigroup
fell more than 3%. Regional bank stocks also declined, with the SPDR S&P Regional Banking ETF falling 2%.

Investors continued to assess the Fed’s latest policy move announced this week. The central bank hiked rates by a quarter-point. However, it also hinted that its rate-hiking campaign may be ending soon. Meanwhile, Fed Chair Jerome Powell noted that credit conditions have tightened, which could put pressure on the economy.

On Thursday, Treasury Secretary Janet Yellen said regulators are prepared to take more action if needed to stabilize U.S. banks. Her comments are the latest among regulators attempting to buoy confidence in the U.S. banking system in the wake of the Silicon Valley Bank and Signature Bank closures.

The benchmark 10-year yield dropped nearly 10 basis points to 3.313%. The 2-year rate slid 17 basis points to 3.635%.

Portfolio:

Strong week for us and We enter the last trading session of the week holding 1 set-up – PLTR. We do want to add new opportunities close to triggering but also want to respect the Fridays notorious price action. Need to see how we trade and respond today. Would anyone be surprised to see a bounce and go today? Let's see but one thing is certain, absolutely beautiful technical market we have in place right now and everyone should be taking full advantage of it!