While the buzz from the top is that the banking crisis is under control, traders still have the jitters and are on a hair trigger to sell. Just as can happen with stocks that get pushed out of whack by big headlines, the indexes are all over the place. There is an undeniable change in the air, however, and support for recent gains feel quite fragile.


Look at inverse ETFs like SPXU, which is the inverse of the S&P, as a possible consideration to use to protect against further drops.
“We do not expect a full-blown financial crisis, but one must not dismiss the underlying dynamics,” said Karsten Junius, the chief economist at Bank J Safra Sarasin AG. “Financial conditions will most likely tighten further and increase recession risks. We therefore advocate a defensive positioning with regard to risk assets and a tactically cautious stance on the banking sector, even though the constructive case for banks remains intact over the medium to longer term.”
If things keep blowing up, there won’t be much the top brass can do to muffle the sound.
Sincerely,
Ian Cooper
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