Cash squeeze

I am currently in Melbourne, where I will be speaking at the Australian Technical Analyst Association’s annual conference.

S2N spotlight

The talk has been about the sharp selloff in regional banks in the US, with the index down over -6%.

In the chart below you can see some of the market squeeze for liquidity triggered by some bad loans in the regional banking space. The Standing Repo Facility (SRF) red line spiked to $8 billion. This facility is the Fed’s emergency window for banks and primary dealers to borrow money when money is tight. It certainly seems like something to keep an eye on.

S2N observations

10-year US Treasury yields have just dipped below 4%.

MicroStrategy (actually just Strategy) bought 220 Bitcoin at a price of $123,561 a few days ago, taking their average cost of purchase to $73,000. Saylor will keep buying as long as he finds enough suckers to buy his financially engineered house of cards. I have been recommending shorting MicroStrategy and going long Bitcoin for over a year now. I am pretty sure it won’t be all that long before Michael Saylor is finally recognised as the charlatan he is. I wouldn’t be so unkind with my views if he wasn’t so reckless with his cheerleading of such a highly speculative asset.

S2N screener alert

Gold is now the most overbought it has ever been in history on a monthly basis using the RSI (relative strength indicator) at 91.6

Yesterday gold made another forceful move up with a 4+ Z-score thrust for only its 84th time in its history. I am taking profit with 10% of my gold holdings, purely from a short-term trading perspective.

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