Someone Went Under...

You don't see bank stocks sell off like this unless there's a bunch of people all taking a write-off at the same time. We'll find out... or maybe we won't.

Dear Fellow Traveler:

We’re seeing a good few years of Quantitative Easing slash Yield-suppressing easy gains turn into panic buying. The markets loved the Money Printer - but it’s not coming on soon. And sure enough… there’s a pretty interesting development.

I was on a quick market update with Don Kaufman today, and he pointed something out. The SPDR S&P 500 Financial ETF stock is a pure falling knife, meaning no one is buying up bank stocks right now.

It’s down more than 10% in two days. This fund represents many of the big commercial banks you know - Bank of America (BAC) and JPMorgan (JPM). But you also have Goldman Sachs (GS) and Morgan Stanley (MS). Interestingly…

I just called Bank of America and JPMorgan commercial banks…

But that’s not all they do. They have massive institutional elements to them… and there are clearinghouses at these firms. When we see this sort of development in these stock prices - it can signal that some big trade or trader somewhere has blown up. And many …