$Direxion Daily Regional Banks Bull 3X Shares ETF (DPST.US)$...
$Direxion Daily Regional Banks Bull 3X Shares ETF(DPST.US$ moments ago Bank of Canada cut interest rates for the first time in 4 years. why is this important why does it matter because they have the same 2% Target rate as the FED in the United States and they're at the same basic rate right now in their country for growth for inflation as we are in the United States. why are US Banks down today I don't know the market's not rational but our neighboring country cut rates they have similar circumstances to the United States Friday there's a big economic number coming in the US, we will see what happens to markets.
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ITMAN : Please tell me why Canada cut interest rates, but regional banks are falling again? thanks
10baggerbamm OP ITMAN : that's what I commented on if the market's not rational tonight we have ECB European central banks that I guess are going to be cutting it creates a trend so if Canada cuts their financials are very similar to the US it puts pressure on the Fed. the market's not rational there's institutional money that's unwinding out of banks the large member banks are down the regionals are down I mean the the earnings were very good on these regionals as well as the large member banks. unless somebody knows there's an impending disaster that's going to happen today tomorrow the next day which could be out there I don't know I don't know what to tell you the market's not rational I have a position in the regionals I've publicized it. utilities are down banks are down and industrials are down right now.
10baggerbamm OP ITMAN : the regional banks in the United States and the member banks in the United States are not correlated directly to Canadian Banks they are their separate businesses so technically when they cut it doesn't immediately impact the United States but it does put pressure on the United States it also makes the US dollar more expensive relative to theirs that's why you saw a spike in the dollar immediately only announcement
ITMAN : Thank you for your patience in explaining, no wonder the Dow also fell
10baggerbamm OP ITMAN : another way to think about it is there's hundreds of billions of dollars probably trillions of dollars available between all of the large regional Banks and the big Banks the Goldman's the Morgan Stanley's the chase the Bank of America and if you're a money manager and you want to sell you can't sell them all in one day if you're going to pare down your position it may take a week to two weeks a month but once you start you're committed and you're going to feed into any strength you're going to close out positions you're going to reduce positions because you want to redeploy the money elsewhere so if that's what's happening right now short-term because we've seen a rally and the large Banks we've seen a rally short-term in the regionals then that's what's going to happen and you can't stop it but it will end and then new monies will come in and it'll get bit up and the stocks will trade higher again and then momentum chasers will jump in especially in the regionals
ITMAN 10baggerbamm OP : Are you bullish or bearish next for regional banks? thanks