If Markets Still Don’t Trust Banks, Should You? with Nick Santiago (Ep #475)

from Daily Market Wisdom with Nick Santiago

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.


1. It’s still all about the banks. Yesterday, we got news that a special discount window was opened to the banks to provide liquidity. Then, First Republic Bank (FRC) confirmed that it will receive a $30 billion injection to help cover deposits. This money was given to them by several large banks like JP Morgan, Bank of America and others. First Republic also announced it will suspend its dividend. Basically, the financial system has been bailed out without anyone calling it a bailout.

2. Oil is weak again today. This is not a good chart right now. Crude oil broke below the February 6th pivot and that opened the chart up for more downside. Oil will obviously not fall in a straight line, but it is in a weak technical chart position and should be avoided unless you are a savvy scalper.

3. Today is quadruple witching options expiration for March. This has been a very volatile and choppy week. Traders that are sticking around into the close should watch for some wild end of day action. There will be a lot of rebalancing going on and exercising of options, so things could be all over the map in many individual names.

4. Gold is strong again today. This tells me that the current bank crisis is not over. In order for gold to rally right now it is signaling fear is alive and well. if gold starts to retreat that will likely signal some relief in the major indexes.

5. Bitcoin is surging higher today again. This is likely another move due to the recent liquidity injection in the market. Bitcoin took off on Monday and really has not looked back. Again, this is an alternative to the banks at this time. The rally can continue a bit more, but nothing has changed on the larger time frame which is bearish.

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