El Capitan
Position: None
What Has Gotten Into Bank Stocks?
* The consumer is ‘spent up, not pent up’…
The same thing that has got into the shares of Walmart (just look at the sickly $WMT chart) and other consumer staples — a weakening consumer.
The low-end and middle-end consumer has lived on borrowed time — the dwindling savings rate (now at about 2.6%%) suggests the consumer, plagued by a weak jobs market and an acceleration in the rate of inflation, is spent up and not pent up:
The consumer forms the core foundation of most banks.
While the K-shaped economy has buoyed the wealthy (with large balance sheets, invested in stocks and real estate) — a crack in equities could adversely impact the resilient and higher-end consumer.
Position: None
Tweet of the Day (Part Trois)
Position: None
Tweet of the Day (Part Deux)
Position: None
Kuppy on Google
Position: None
Stated Simply…
Position: None
Tweet of the Day
Position: None
Graph of the Day
Position: None
Back Shorting the Indexes
With S&P futures down by only -5 handles (they were -33 at the lows last night when I was covering), I am back shorting the indices:
* $SPY $757.99
* $QQQ $742.47
Position: Short SPY (M), QQQ (M)