Another One Bites the Dust!

Hi There! It's that time again - Daylight Savings Time (DST).  The annual tradition where we all come together to collectively lose an hour of sleep.  As for me, after 20-plus years in America, you'd think I'd have DST all figured out.  But nope!  Back in Grenada, we do not do the DST thing, so I am always a bit flustered when the clocks start jumping around.  Anyhoot my friends, remember to "Spring Forward".      

Alright, let's dig in!

Last week ended with a deafening crash that shook the core of the banking and crypto worlds. 

Last Friday (3/10/2023), the 16th largest bank in the nation, Silicon Valley Bank (SVB), was shut down by financial regulators.  The cause of the closure was the bank's ill-fated decision to invest heavily in bonds, in an attempt to boost the value of its holdings (🤦🏾‍♀️).  This plan proved to be a two-edged sword, as the value of bonds plummeted due to increased interest rates.  The news of SVB's downfall dealt a devasting blow to venture capital groups, particularly tech startups, who were a significant part of the bank's clientele.  The impact was equally severe for shareholders, who watched in horror as SVB's already weak stock price took a nosedive of 60%, with no sign of recovery.  The entire debacle has left investors on edge, as they fear the Fed's relentless efforts to combat inflation have exposed weaknesses in the financial system.

Meanwhile, chaos erupted in the crypto streets!

Over the weekend, Circle, the issuer of the USDC stablecoin, announced that it held an undisclosed amount of cash in SVB.  This caused a disruption in the crypto market as the USDC depegged from the dollar, causing its price to drop.  The federal regulators intervened, which provided some reassurance.  However, disaster struck again!  There was further news that Signature Bank was facing issues and was forced to shut down on Sunday.  Circle's CEO mentioned that this would impact their ability to mint or redeem USDC through Signature's Signet product.  Let's see what happens during the week as the saga continues.

While writing, federal regulators announced that SVB depositors will be able to access all of their funds on Monday (3/13/2023). 

Other key highlights from last week: 

• U.S. stocks closed sharply lower and Treasury yields tumbled

• Crude Oil edged higher after nonfarm payrolls rose

• Starbucks Odyssey NFTs sold out in 18 minutes

• AQUA to build better gaming onramps to Web3 on Polygon

Here's what to expect in the week ahead:

The impact of SVB contagion will continue to be exposed in both the crypto and traditional markets. 

The key U.S. economic releases to watch include the Inflation Rate, Producer Price Index (PPI), Retail Sales, Housing Starts, Industrial Production, and Michigan Consumer Sentiment.

The upcoming high-impact global news includes UK Unemployment Rate and Spring Budget, and European Central Bank (ECB) Interest Rate Decision and Press Conference. 

Notable earnings include Adobe (NASDAQ: ADBE), Five Below (NASDAQ: FIVE), Dollar General (NYSE: DG), and FedEx (NYSE: FDX)

Next week's anticipated bias (not financial or investment advice):

• Monday (03/13/23) - Historically a good day for Bitcoin

• Tuesday (03/14/23) - Profit taking expected in all markets

• Wednesday (03/15/23) - Safe to buy lows after London close

• Thursday (03/16/23) - Bullish

• Friday (03/17/23) - Triple Witching - Trade the trend

Trading Tip: Follow the narrative; Follow the money!

March Week 03/05/23 - 03/11/23 Recap

Special Tools and Strategies 

What is a LEAP?

Long-term equity anticipation securities (LEAPS) refer to publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue.

Every month our mastermind group researches stocks that have a high tendency to expand to the upside.  Here are two LEAP stock options for the month of March 2023:

• VZ

• CSX

The game plan is to buy starter positions on a bearish predictable day listed in our monthly trade secrets plan and watch for movement to the upside over the next three months.

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Disclaimer: This newsletter is strictly educational.  The information provided in this report does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the report’s content as such.  Please be careful and do your own research.