US Banks Are Down 12 Days In A Row - The Longest Losing Streak In History

'Stress Tests would be the catalyst', they said... and now 'CCAR will be the catalyst', but US financials ETF (XLF) is now down 12 days in a row - by far the longest losing streak in its 20 year history...

 

The question now is whether XLF can find support once again around the 26.5 level...

With the big US banks all down notably in 2018...

But it's not just US banks - the Global Systemically Important Banks (as defined by FSB) are down 22% from their highs at the end of January - which just happens to have coincided with the release of The Fed's Stress Test and CCAR results...

 

Finally, here's an interesting 'correlation': Eurodollar futures shorts soared since Q1 2016 - the start of the so-called Shanghai Accord, which corresponded with an endless surge in global financial stocks. That has now all changed as the net speculative positioning in eurodollar futures has collapsed by over a trillion notional dollars in the last few months and with it, GSIB stocks have tumbled...

We leave it to Ian Hartnett to sum it all up... at some point central bankers will have to respond to bearish signals from an increasing number of the global SIFIs, rather than continuing to tighten monetary policy:

“The clue is in the name,” he said.

“If these banks are supposed to be systemically important then policymakers ought to be watching them to see what is happening.”

"The synchronised dips were a sign of global financial stress."

But, hey, keep buying the mega-tech stocks, they are the new 'fortress balance sheets'.

Comments

Winston Churchill Cryptopithicus Homme Tue, 06/26/2018 - 12:30 Permalink

You have much to learn about psychopathy if you think outrage will be of the slightest concern to the PTB.

Even if they have to shut down the internet,a couple of hundred million dead would probably bring

them amusement ,not anguish.I don't want to rain on your parade,but the first rule is Know thy Enemy.

Power can only be taken from a psychopaths cold dead hands, don't bring a blockchain to a gunfight.

In reply to by Cryptopithicus Homme

Scipio Africanuz economessed Tue, 06/26/2018 - 13:01 Permalink

In other words, they're basically saying "Bail us out, or America gets it in the head". Chairman Jerome Powell, did you hear that, the bawling has started already, soon to be followed by the howling, they still don't understand that the doctor is not concerned about the crying, only about the healing. Sir, I don't envy you your task, but I'm here, a nobody, seriously saluting your brave determination, to heal the American financial system.

Perhaps the cry babies need a spank or two, so they can keep quiet, and let you carry on with your medicinal applications. Good luck, and God speed!...

In reply to by economessed

LawsofPhysics Tue, 06/26/2018 - 12:00 Permalink

Their "longest losing streak" is only 12 days?!?!

LMFAO!!!  Bailouts for everyone!!!!

Where is that corrupt treasonous  fuck Hank "tanks in the streets" Paulson these days?

Fuck 'em!

Jump you fuckers!!!

jm ThankUGartman Tue, 06/26/2018 - 12:18 Permalink

My working theory is that banks had so many provisioning requirements to build up HQLA portfolios and now rising rates are forcing them to be banks again.  The regulations are akin to feeding a kid sugar all day every day and then a year later making them to go out and run a marathon.  In the same way, banks got fat on government securities and neglected to be bankers and offer credit for things that help the economy. 

It gets worse the higher up you go in terms of complexity; internationally, the further you get from the dealer/auction/liquidity spigots the harder funding pressures are. 

I don't see earning looking great as long as they have to rebuild provisions.

Smaller banks I don't know about.  They just don't take interest rate risk like they used to.  Seems they are just originators for securitizations and make small business loans.   

 

In reply to by ThankUGartman

johnkenny Tue, 06/26/2018 - 12:03 Permalink

In the news:

IF YOU HAVE ONE OF THESE 11 SIGNS, THEN YOU ARE ONE OF THE RAREST PEOPLE ON EARTH https://www.theflezz.space/2018/06/if-you-have-one-of-these-11-signs-then.html

 

10 mistakes in the human body, which create a lot of problems for us: https://www.theflezz.space/2018/06/10-mistakes-in-human-body-which-create.html 

HUSBAND DRIVES NAILS INTO MAN’S HEAD AFTER CATCHING HIM WITH HIS WIFE: https://www.theflezz.space/2018/06/husband-drives-nails-into-mans-head.html

 

WIFE DROVE HUSBAND BACK TO PRISON TWO HOURS AFTER BEING MISTAKENLY RELEASED FROM PRISON: https://www.theflezz.space/2018/06/wife-drove-husband-back-to-prison-two.html

 

YOUNG MAN RAPED GOAT TO DEATH: https://www.theflezz.space/2018/06/young-man-raped-goat-to-death-in-nigeria.html

1033eruth Tue, 06/26/2018 - 12:07 Permalink

Okay, now that's a STREAK I can appreciate and RESPECT.

Usually its longest or lowest since last Thursday or a month ago or since April.  Meh.  

That streak is a real eye opener, if its legitimate and not fudged in some way to generate the sensationalism.  And I'm too lazy to fact check it.  

east of eden Tue, 06/26/2018 - 12:19 Permalink

Hmm. So according to the Feral Reserve, all US banks are supposed to be able to withstand a '65% drop in market stock prices, coupled with a rise in the VIX to 65'.

But the market doesn't appear to believe that statement.

I trust the market, such as it is.

mendigo Tue, 06/26/2018 - 12:19 Permalink

I am wondering if there are potential advantages to buying holding gold outside u.s.

Will internet sales tax hammer gold?

PA is gold friendly.

whatisthat Tue, 06/26/2018 - 19:31 Permalink

I would observe the majority of US banks are corrupt and insolvent due largely to management shortcomings and corrupt politicians who legislate in favor of corruption..