Steno Signals #41 – Deutsche, Deustche alles ist vorbei?
Happy Sunday and welcome to our flagship editorial “Steno Signals”.
Deutsche Bank suffered materially towards the end of last week without a visible price trigger, which is almost scarier than banking selloffs with underlying fundamental price triggers. As highlighted by my friend Jens Nordvig on Twitter, we lack an obvious and visible trigger for the price action in Deutche Bank, which would otherwise have been highlighted by the tremendous MarketReader software, which I am an early investor in.
Let’s have a look at less visible reasons why Deutsche Bank is selling off and whether it is a symptom of widespread contagion in the European banking sector. Ist alles vorbei for Deutsche? We will likely know within 1-2 weeks from now, but we find reasons to be (very) worried!
Read why as a basic subscriber to Steno Research! Remember that the first 14 days are FREE. Use “crisis20” to get 20% off your first subscription. The offer ends this week.
Chart 1: Deustche Bank price action lags price action in regional banks in the US