In today’s briefing:
- Failed Breakouts, Banks Crumbling — Get Defensive; Buy Ideas Within Consumer Staples
- Silvergate Capital Corp (SI US)
Failed Breakouts, Banks Crumbling — Get Defensive; Buy Ideas Within Consumer Staples
- Charts have not changed much from the prior week, with there actually being some deterioration within banks (KRE, KBE).
- The $SPX has been unable to sustain a breakout above its 200-day MA/YTD downtrend, the $IWM remains below $190 resistance, and the DJIA could not sustain a breakout above 34,280
- As long as these indexes are below these levels, we continue to see this as a good time to shift to more defensive areas and/or take profits.
Silvergate Capital Corp (SI US)
- SI US declined 78.5% from its August 2022 high of 108.11 to its November 2022 low of 23.20.
- Our Trend Sustainability Score (TSS) methodology has triggered a TSS < 10, highlighting extreme short-term momentum failure.
- A new downtrend low, below 23.20, in the coming 1-2 days will likely fail quickly and deliver a 10% to 20% reversal in the coming 1-2 weeks.
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