Friday 30 September 2016

DB spooking the market

US equity indexes closed broadly weak, sp -20pts @ 2151 (intra low 2145). The two leaders - Trans/R2K, settled lower by -0.2% and -1.4% respectively. VIX settled +13.2% @ 14.02.  Near term outlook offers choppy upside into the monthly/Q3 close, with another push higher in early October.




It was a pretty normal day until around lunch time, when a list appeared detailing ten hedge funds that want little to do with Deutsche Bank anymore. Can anyone blame them?

Clearly, less involvment from other financial institutions is not great for DB. Yet.. its more about unsettling mainstream confidence than anything.

DB, monthly, 20yr (linear scale)

DB stock has been on the slide since the May 2007 high of $125.94. With one trading day left of the month, the current candle is of the bearish engulfing type, having broken a new historic low of $11.19 this afternoon. As a profitable financial institution, DB is finished. DB know it. The German Govt' know it. Even Draghi at the ECB knows it.

The only issue is when the bailout, support program, or whatever 'they' want to call it, is announced.

Goodnight from London