First Republic Bank (
FRC
) stock dropped 30% more, plumbing new lows, in Wednesday regular trading as the bank seeks to convince other banks to buy $50B-$100B of its long-dated and mortgage securities in an effort to shore up its balance sheet. The stock was halted numerous times during the session. CNBC reported that First Republic (FRC) is making the case for buying its bonds at above-market rates for a loss of a few billion dollars. If its plan fails, and with it FRC, then those same banks would have to pay ~$30B in Federal Deposit Insurance Corp. fee
The major indices closed the session in mixed fashion, yet yesterday's trade skewed negative under the surface. I think not just because of big techs' disappointing earnings, and more from fear of banking system crisis.
Today we will see GDP growth, the expectation is 2%. Be honest, I personally do not think the data will be very positive.
SPY breaks the 15 mins trend line support this Tuesday and speeding up the downside move, yesterday SPY tested 50 EMA daily, and found some support there. In today's pre-market trading, SPY is moving upwards, however prior 15 mins trend line "support" will cause some selling pressure for the SPY, $405ish level will likely been tested again today.
QQQ make a double top on daily chart, and we can also see downside move was speeding up as I marked green dot on 15 mins chart. Instead of test 50 EMA daily, QQQ gave an inside day on daily chart pattern, therefore, I will likely to use yesterday's high to short the QQQ to 50 EMA daily level.
