A new Bull Market never Occurs without this one thing!
Why are BULLS so bulled up?
Today we are going to take a look at how a new bull market in stocks cannot happen without the participation of this group.
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Are you a professional investor looking to make the most of the next bull market?
You're not alone!
A bull market can bring huge gains to investors who get it right. But, what is the one thing that must happen before a new bull market can truly begin??
The answer may surprise you.
There are many factors that must come together to create the perfect conditions for a bull market. But, there is one key factor that is the essential ingredient that must be present before a bull market can really take off.
In this one key factor, and how you can use it to your advantage in the coming bull market. And right now the message is clear, we are not in a new bull market yet!
BANKS need to go higher!
In all major recessions that we have had, Banks peak first and then we get a sector rotation from other parts of the market. Not the other way around!
Except maybe for COVID, a rare exception to the rule, the market does not simultaneously move lower together. Weird, right?!
Actually, not at all!
We call this phenomena distribution -> when the shares of a company are being sold, on net, in the market (and is the opposite of accumulation stock).
The banks stocks are getting CRUSHED today! Absolutely demolished!!
Two banks SilverGate, $SI, and Silicon Valley Bank, $SIVB, are in trouble. SilverGate is winding operations and liquidating it's business and $SIVB sold off a $21 Billion bond portfolio for a huge loss, a $1.8 Billion dollar loss on the sale of it's bonds, more than the net income of the entire company in 2021 ($1.5 Billion).
Genevieve Roch-Decter, CFA, who we highlighted yesterday as a women to follow on International Women's day, broke it down for us today in this timely twitter thread:
Be sure to give her a follow if you haven't and inform yourself of why the market has been saying risk off to us for some time now and why we have been getting short.
We appreciate everyone that takes the time to read our blog posts and don't forget to trade confidently!
Essex Trading Quote of the Day (#EsxQotD)
"Sell it all, Today."
~ Line from the movie Margin Call