$3.80ish next stop?, page-132

machine selling is always linked to US equities - dont blame human traders. its the price we pay for the US running the global share market ex china a shares

but with banks specifically there is good reason to sell off hard - as i went to great pains to explain whats driving bank pricing.

basically the US market started pricing in a global reinflation cycle based on no economic data. this happens every market cycle - economy in bear trend, market thinks it may have broken out - then reality bites and market crashes

in that false dawn US bond yields started to rise - steepening the yield curve - driving global bank share prices up because they are thought to profit from the spread difference between short rates and long rates

but then economic data comes crashing in that corrects the misnomer

in this case it's been hyper magnified by massive US liquidity injection - which has now started to fall away as US treasury starts to issue more bonds to pay for the free money

now we are getting
- net liquidity going from positive to negative - removing that support from stock prices
- US earnings starting to arrive - showing much bigger falls in earnings vs the 'v' theories many on wall st were peddling
- potential for US' covid wave 1 part 2 surge further damaging renewed gdp and job growth

market is likely going to crash until much later this year if not into next as equities get right sized to earnings and market realises covid had semi permanently erased 5-10% global gdp if not more

probably see another false dawn or 2 on the way though - if US keeps doing more free money