Banking Meltdown and Risk of a Depression
I am writing this newsletter from Zürich, Switzerland, where I flew from the UAE for the weekend. I will be back again in the Emirates next week. One nice thing about living in the Middle East is that it is so central to everywhere. You can easily make a weekend trip back and forth to the EU. In Canada, the first big city is a 6-hour flight away, and all within Canada!
The market is in turmoil, as 3 big banks are on the verge of collapse: Silicon Valley Bank, Silvergate Capital, and Credit Suisse. The reasons why these banks are in crisis are different for each, but the fear of a systematic risk that trickles to all other financial services is putting pressure on the markets. The XLF, the ETF for financials, is taking the market down.
The market was volatile during the day and provided some amazing trading opportunities. I traded Tesla and TQQQ and the recap is now posted. Carlos is also creating a REPLAY video of these trades in order to provide a better understanding of my step-by-step process.
Today, the unemployment number that came in was interesting. Two pieces of good news came in regarding inflation this morning. The unemployment rate increased to 3.6% (which is good, meaning the economy is slowing down) and wage growth came in lower than expected at 0.2% MoM, which also translates to slower inflation. But like most indicators these days, there are mixed signals, as the American economy created more jobs than expected!
Last but not least, if you are in or near Zürich, Switzerland, please join me and a few other traders for a quick meetup. You can RSVP here, or simply reply to this email, or shoot me a message through my various social media.
To your success,
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