Bonds are Telling Us things Still Suck
QQQ's at resistance?
When you get a loan because your liquidity has dried up doesn’t mean that everything is PEACH’s and RAINBOWS. No, it means you have the same problems and now you owe more money then you did before you the FLYING UNICORNS came in and bailed your ass out.
Credit Suisse shares rose over 30% at the market open after the bank said that it will borrow up to $54 billion from the Swiss National Bank.
It comes after shares of Credit Suisse plunged to a fresh all-time low on Wednesday when top investor the Saudi National Bank said it would not pump in any more cash due to regulatory restrictions.
The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks.”
The problem still exists. That problem is liquidity.
The Yield Curve
When people, institutions get nervous about the potential of not being able to get their money from their banks, they move their money to a place where they are most likely to be able to get their money. That place over the last two days is Treasury’s and German Bunds.
Below is the Yield Curve. You can see the massive move in to 2 and 10 year treasury’s. If the yield curve rises, then fear is growing. If the curve steepens, goes more negative, fear is subsiding. I suspect we will see the curve rise out of more concern over a lack of liquidly.
QQQ’s
Below is the Daily chart of the QQQ ETF. QQQ have hit the 250 day EMA. Is this resistance? We will see at the end of the day. REMEMBER, problems aren’t gone. The problems are still there. Remember, META laid off more people this week. That is a sign things aren’t getting better.
I’ve run out of time. I believe you get the point I am trying to make.
Have a great day.