Fear Peaks 2nd Day in a Row: Time to Buy

We saw another rally in fear, only to retreat to the lows of the day.

In Friday’s post I noted how stocks are likely to go up the next few trading days, despite the failure of SVB. Why? Because fear peaked and retreated.

TL:DR Friday’s Post. The last 8/9 times fear peaked and plummeted, stocks rose in the coming weeks.

Today we got further confirmation of the price action Friday.

Fear skyrocketed this morning, then had a dramatic pullback. Notice how fear reversed outside of the upper Bollinger:

As the market action unfolds, we discover new clues as to what may happen. This is another piece of anecdotal evidence that we’re in for a rally.

Whether you think the rally is A) a bear market rally or B) the beginning of another bull market, it doesn’t matter.

There is a heavy bias to the upside from here. Especially for regional bank stocks that are far more diversified than SVB was, and actually hedged their balance sheet like a bank should.

DISCLOSURE: I bought KEY 0.00%↑, PACW 0.00%↑, and BSVN 0.00%↑ this morning, and of course more oil.