More On Bank Extinction with Nick Santiago (Ep #494)

May 23, 2023

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends.

Today:

1. Last week, the major stock indexes carved out a solid gain into options expiration. I always view options expiration week as a time for the institutions to take advantage of the small retail options trader playing the near term expiration. Now that is over and real trading should be underway this week. The markets are currently trading mixed as tech remains strong and the other major indexes seem to flounder around in a range. This tells me that the leadership is extremely thin right now and FAANG is the only real strength out here.

2. I know we have been talking about the Regional Banks a ton lately, but that is still very important. Last week, Treasury Secretary Yellen said that there would likely need to be more consolidation in the banking sector. In my opinion, this current stock market rally is only continuing because the central banks are supporting the banks right now with different programs. So this is like QE without being called QE

3. Later today, we will hear more about the debt ceiling. President Biden is meeting with Speaker McCarthy at 4:30 p.m. today at the White House. So we shall see what they have to say. I don’t expect anything concrete at this time.

4. Gold is trading slightly lower today. There is still a lot of daily chart support for gold around the $1940 area.

5. Bitcoin is flat today. The commercial money has been increasing their short side exposure to the popular crypto name, but they are usually early. This is a bearish sign. The charts say there could still be a minor pop and then a fall. If it makes a bearish pattern first I would look for a decline instead of another pop.

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