Posted on January 25, 2021
The financials have had a sure sharp rise these last three months, climbing as a group almost 35%, before pulling back just last week.
Going forward, our estimate is that a decline in markets will engender a steep reduction in trading and an overall curtailment in both lending and spending – meaning the banks will start to feel the pinch.
Yes, it’s all predicated on a chill running through the stock market, an event we’ve been calling for some ten weeks now.
And admittedly, we’ve been early.
But it’s going to happen.
And for that reason, we’re going straight to the heart of the beast with today’s trade, in a heroic effort to eviscerate the monster that dwells at the core of all that’s evil in this world – man’s desire for filthy lucre.
And don’tcha know that it’s in the boardrooms of the banks that the very levers of that desire are pulled…?
We’re basing today’s trade on the Financial Select Sector SPDR ETF (NYSE:XLF), a good enough representation as any of the heavyweights in the money biz.
With kind regards,
Hugh L. O’Haynew