Closing Market Report: Feb. 6th, 2024

Overall it was a boring day on the major indices.

Judging from the overall action, you would have no way of knowing that NYCB was down another -22% on record volume.

We are told that there is no connection between NYCB collapsing this year and the bank run that took place at the exact same time last year. No one questions it. Just as no one saw those banks imploding, no one sees this bank imploding either. When it comes to banks you are not supposed to say anything bad about them until after they explode and disappear, otherwise people might panic and try to get their money out.

The thing about boring markets, is that they are always followed by exciting markets.

Sometimes too exciting.

And just like imploding banks, by the time people figure out they should have gotten their money out, it's too late. Because in these markets, risk is binary.