Broadening AI Rally and Bull Market Outlook
"Talk to us about the broader market because we are pausing in our Santa rally, but we still have a couple of days. We could make it up. We still have a couple of or maybe a couple Yes, couple of days until I think two days after January and it's looking good because the S&P is up 17% this year. We're entering our fourth year of the bull market. And I think if there's a thing to note this year, it's that the AI rally has broadened. Remember in the past years it's just Nvidia, Nvidia, Nvidia. Nvidia is now just the 71st ranking in the S&P 500. The very first are data companies that really benefit from this whole AI rally. I mean, they're companies not a lot of people have heard of. SanDisk, it's up 600%. Western Digital. We used to use SanDisk all the time back in the day."
The broader market remains bullish with the S&P up 17% and a prolonged bull market, while the AI rally is diversifying beyond traditional names like Nvidia to include lesser-known data companies.
Huntington Bank Faces Investor Caution Amid Acquisition
"Uh what else have we got here? Huntington Bankorp. Now again, full disclosure, Huntington Bank, it is the bank of the Matthew Miller family. Just letting you laying it out there. It\"s a whole Columbus, Ohio thing. Well, the bank of the Matthew Miller family not doing well this morning. Uh so ticker HBA and Doshar\"s down 2.6%. So, okay. So, investors are reacting to a deal that they announced. So, they\"re saying that they\"re going to buy Cadence Bank, which is another regional bank for a $7.4 billion deal."
Huntington Bank (HBA) shares are down 2.6% as investors react cautiously to the bank\"s second major acquisition this year, a $7.4 billion deal to buy Cadence Bank, amid concerns over the strategic fit and premium pricing.
Sid Bank M&A Sparks Surprise, Boosts Share Price
"Yeah, so Danish bank Sidbank has agreed to buy two rivals to combine into one bigger bank with the new entity uh becoming among, well, one of Denmark's five largest banks. Uh so we've seen the shares of Sid Bank rise quite a lot this morning on news of that deal which was actually really unexpected. An economist at Nordnet in Denmark called the acquisition a genuine surprise and said that it came completely out of the blue but it seems to be welcomed quite warmly by the market. Um, this comes as we've seen quite a lot of consolidation in the Nordic banking sector. We saw DNB recently take over Carnegie, and it's also been quite a lot of talk or attempts of consolidation in the European banking sector more generally. Some of the big proposals have failed. Of course, we know about BBVA and Sabadel Unic and Commerce Bank being stalled at the moment. So perhaps those smaller deals are maybe the way forward."
The segment discusses Sid Bank's unexpected acquisition of two rivals, noting a significant rise in share price and a positive market reception. It also touches on broader consolidation trends in the Nordic and European banking sectors, suggesting that smaller deals could drive future growth amid stalled larger proposals.
DPST: Triple-Leveraged ETF Trade Call Amid Bank Stress
"The third thing that I said was I got an alert from DPST. I had made this public. I said, "Hey, DPST because of the regional bank issues last week. We've seen this before. This was last year, the year before when Silicon Valley Bank went bust and you saw a huge surge in DPST off of that drop. This one went from $80 to $650 during that run. It was super simple. Again, a triple leveraged ETF. And you can see the alert right there is the buy in the 4hour algorithm.""
The speaker highlights a trade alert for DPST, a triple-leveraged ETF, triggered by regional bank issues reminiscent of the Silicon Valley Bank episode. He recalls historical moves from $80 to $650 and indicates that the 4hour algorithm has signaled a buy, suggesting a tactical trading opportunity based on prior momentum during banking stress.
Trade Call on DPST (Triple Leveraged Regional Banks ETF)
"I wrote on Friday that I was looking to buy DPST. What is DPST? It is a triple leveraged ETF on the regional banks. I want to buy the dip. So I set an alert and Trend Spider. Hey, tell me when this is a buy in the 4hour algorithm. Now, does it beat buy and hold? You bet. Over the last two years, it makes 160. This is a triple leveraged ETF. You should not be holding. It should not beat buy and hold. This is a decaying asset. And yet DPST has beaten buy and hold. It wins 43% of the time."
The speaker details a trade call for DPST, a triple leveraged ETF on regional banks. He emphasizes buying the dip using technical alerts from a 4-hour algorithm and highlights its historical performance against buy-and-hold strategies, despite its intrinsic decay.
Regional Banks Under Pressure
"Zeon's bank sank 14% after it disclosed 50 million charge off for a loan underwritten by its own subsidiary. And then Western Alliance Bankorp fell almost 11% after it said it made loans to the same borrowers. Of course, there are growing concerns about credit. The disclosures add to other recent loan blowups, and now the fact that small regional banks are seeing some impact is raising more questions."
The speakers highlight heavy losses at two regional banks, with Zeon's bank and Western Alliance Bankorp both experiencing significant percentage drops. They attribute these declines to problematic loan disclosures and overall emerging credit concerns, suggesting potential immediate risks in the regional banking sector.
Nordea Bank Shows Strength with Share Buyback and Earnings Beat
"So Nordia is actually the first big European bank to report in the earning season and it looks quite positive. It launched a 00250 million euro buyback. Net interest income also beat expectations because the CEO said that Nordic companies had a renewed appetite for investments, which translated into increased demand for lending. This performance is reassuring for Nordia and could bode well for the rest of the European banking sector."
The speaker notes Nordea Bank's positive earnings report, highlighted by a 00250 million euro share buyback and stronger-than-expected net interest income driven by renewed corporate investment demand, suggesting a bullish outlook for the bank and potentially the broader European banking sector.