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K Wave's Final Warning


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#11 K Wave

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Posted 12 March 2023 - 05:40 PM



Schwab insiders have  been selling. How about fidelity?

Yeh, Schwab 10K discussing the AFS issues they are facing. They also seem to be a lot different company than in 2008.

 

The Company continued its diligent approach to balance sheet management in 2022, maintaining appropriate capital and

liquidity to support client activity and returning excess capital to stockholders. As market rates rose from near-zero levels at the

beginning of the year, clients allocated a growing portion of their assets to higher yielding cash and fixed income alternatives.

Total balance sheet assets decreased 17% year-over-year to $551.8 billion at December 31, 2022 as a result of these client cash

allocation decisions and unrealized losses on AFS securities, both resulting primarily from higher market interest rates. To

facilitate these client cash movements, we took steps to enhance our liquidity by limiting new portfolio investments to help build

available cash and utilizing short-term funding sources including FHLB advances and retail certificates of deposit.

 

But at least they are attempting to stop the Mark to Market bleed by moving assets to Held to Maturity. Arranging deck chairs on the Titanic? Not sure...

 

Return on average common stockholders’ equity grew to 18% in 2022 from 11% in 2021, while return on tangible common

equity (1) (ROTCE) increased to 42% in 2022 compared with 22% in 2021. The increases in both return on average common

stockholders’ equity and ROTCE were due primarily to lower stockholders’ equity and growth in net income. Stockholders’

equity declined in 2022 primarily due to a significant decrease in AOCI, as higher market interest rates resulted in larger

unrealized losses on our AFS investment securities portfolio. In January and November 2022, the Company transferred

$108.8 billion and $79.8 billion, respectively, of investment securities from the AFS category to the held to maturity (HTM)

category (see Capital Management and Item 8 – Note 6)

 

It is certainly clear they feelin' the heat.....

 

The Company continued its diligent approach to balance sheet management in 2022, maintaining appropriate capital and

liquidity to support client activity and returning excess capital to stockholders. As market rates rose from near-zero levels at the

beginning of the year, clients allocated a growing portion of their assets to higher yielding cash and fixed income alternatives.

Total balance sheet assets decreased 17% year-over-year to $551.8 billion at December 31, 2022 as a result of these client cash

allocation decisions and unrealized losses on AFS securities, both resulting primarily from higher market interest rates. To

facilitate these client cash movements, we took steps to enhance our liquidity by limiting new portfolio investments to help build

available cash and utilizing short-term funding sources including FHLB advances and retail certificates of deposit.

 

 

and Yikes?? And this is probably a wide spread issue...

 

afs.jpg


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#12 jacek

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Posted 12 March 2023 - 06:16 PM

Schwab insiders have  been selling. How about fidelity?

Fidelity is private



#13 skott

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Posted 12 March 2023 - 06:29 PM

Lots of fear right now. I wont be surprised by a bounce here.  I actually prefer the stairstep down we are having. Lower lows,  lower highs



#14 beta

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Posted 12 March 2023 - 06:42 PM

"But seriously, I think folks have a very rare opportunity top make small (or large) fortunes shorting individual stocks, rather trading the indexes, so that is where I am focusing my trading now.

Am so glad we are finally out of the chop, and do not have to focus on flipping trades every few hours."

 

 

Totally agree.  GS and TSLA setups have worked like a charm !  laugh.png

 

Please come by and post when you can.  Not everyone has the good manners to say "thank you" on this forum, but I'm sure your charts are greatly appreciated by many.

 

Dont let the chart illiterati  dunce.gif  keep you away.


Edited by beta, 12 March 2023 - 06:42 PM.

"Daytrading -- An Extreme Sport !"

#15 skott

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Posted 12 March 2023 - 07:05 PM

Short the bounces



#16 linrom1

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Posted 13 March 2023 - 07:02 AM

Thanks Kwave, the board surely missed your levelheaded analysis.



#17 K Wave

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Posted 13 March 2023 - 08:56 AM

25 Billion...

 

PNC.....

 

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#18 K Wave

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Posted 13 March 2023 - 10:30 AM

Final stage of the Bear Setup happening NOW

 

Yield curve inversion getting decimated. 2/10 down from 110 to 50. 10/30 nearly flat

 

Worst part of bear markets usually begin when inversion starts to reverse....


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#19 K Wave

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Posted 13 March 2023 - 10:32 AM

Bulls only hope here is to get apple to stick above 152...and even that might only be a temporary reprieve.

 

Under 148...turn out the lights


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#20 linrom1

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Posted 13 March 2023 - 10:41 AM

Not a bad choice to buy T-Bills with 5.28% yield.