THERE IS AN ETF THAT ALMOST NOBODY KNOWS BUT IS KEY (YOU MUST CONSIDER ITS HISTORY)
💥And this time, the chief strategist at Bank of America states that the conditions for a "total flush" of the markets HAVE ALREADY BEEN MET.
What does a bank loan fund ETF have to do with your portfolio?
It is called SRLN (State Street Blackstone Senior Loan ETF).
▫️Almost nobody outside of Wall Street knows it. But Michael Hartnett, the chief investment strategist at Bank of America, uses it as a THERMOMETER of the financial system.
What is the SRLN? It is an ETF that tracks the behavior of "senior loans," which are variable-rate loans that banks make to companies.
▫️They are on the FRONT LINE of the funding chain. They are the first to feel when credit begins to deteriorate.
Why does it matter? Because when this ETF falls below its 200-day moving average (200dma), historically very BAD things happen.
👉Look at the chart and the history:
▪️2015: SRLN broke the 200dma → Devaluation of the Chinese yuan (CNY Deval). Global markets collapsed.
▪️2018-2019: Broke the 200dma → BlackRock liquidity event (BKLN Event). Stress in the loan market and market declines.
▪️2020: Broke the 200dma → COVID-19 crashed the markets.
▪️2021-2022: Broke the 200dma → The FED began to aggressively tighten + pension crisis in the UK (UK gilts). SP500 fell -22%.
▪️2025: Broke the 200dma → Trump tariffs (Liberation Day). SP500 crashed.
🎯ALL the times that the SRLN lost the 200dma, a SIGNIFICANT negative market event occurred.
🎯Without exception. And it just broke it AGAIN, closing at $39.89, losing the critical support of $40.
👉But this time, Hartnett sees something WORSE. It’s not just the SRLN. There are TWO signals activating simultaneously:
▪️SRLN fell below $40 (the 200dma).
▪️XLF (the financial sector ETF) fell below $52.
🚨Hartnett had said BEFORE that when both levels are lost simultaneously, the conditions are met for what he calls a "proper flush": a systemic liquidation of risk assets.
🚨And in his latest report "Flow Show", he confirmed: the conditions have been MET.
What does Hartnett comment about what is happening?
🗣"Bank loan funds are the vanguard of the funding chain. Historically, when they fall below key levels, they act as a LEADING INDICATOR of broader risk events."
💥He states that the PRIVATE CREDIT crisis is "either the most accurate leading indicator of the market, or the direct catalyst for contagion."
💥In either case, the outcome is the same: problems.