Total DB Move

Much like at various junctures in the 2008 bear with Bear Stearns, Fannie/Freddie, AIG, then Lehman and Citi, equities may very well be tethered to the day-to-day movements in the likes of CS and DB, two European banks under significant pressure and may be indicating systemic risk. 

Although it may seem too obvious and simplistic to draw that analogy, the reality of the price action in stocks of late is that every day there is much discussion, even ballyhoo, about a counter-trend market rally. But there is not much to show for it yet. 

Financials, as a group, also continue to weaken, seemingly reinforcing the idea that The Fed's rate hike in December was already priced in, and that they are done raising for a good while. Semis, another good tell from yesterday, also continue to deteriorate, making any slight divergences in the small/mid-cap biotechs today not yet actionable until the laggards can at least stop going down. 

But as long as Deutsche Bank and Credit Suisse print or probe multi-decade low, it is tough to embrace a few beaten-down high beta tech or biotech names staging intraday bounces. 

I will flesh out those ideas, as well as updating the precious metals and miners, for Members in my usual Midday Video.