My current ES range is 3007-2936
The S&P 500 topped at 3017.8
- Thread starter volente_00
- Start date
Wow just wowwww.
Something is going on and markets are just totally ignoring it
FEDERAL RESERVE
The Fed is sharply increasing the amount of help it is providing to the financial system
PUBLISHED 29 MIN AGOUPDATED 19 MIN AGO
Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM
KEY POINTS
https://www.cnbc.com/2019/10/23/fed-repo-overnight-operations-level-to-increase-to-120-billion.html
Something is going on and markets are just totally ignoring it
FEDERAL RESERVE
The Fed is sharply increasing the amount of help it is providing to the financial system
PUBLISHED 29 MIN AGOUPDATED 19 MIN AGO
Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM
KEY POINTS
- The New York Fed announced it is increasing its temporary overnight repo operations to $120 billion a day from the current $75 billion.
- In addition to the repo increase, term repo operations are increasing to $45 billion, from $35 billion
https://www.cnbc.com/2019/10/23/fed-repo-overnight-operations-level-to-increase-to-120-billion.html
The market isn't ignoring it. The market knows that the Fed created this liquidity suck in the first place. If you take the time to actually look at the amounts of liquidity the Fed is putting back into the repo market it's peanuts compared to QE. And QE started the liquidity suckage. The Fed's just playing catch up. And unless you're trading the treasury basis spread this has very little to do with the markets.
What is your current position?
Currently short ES from 3008
Stop is 3020.5
Objective one is 2986
Objective two is 2937
Agree that this is very strange. I thought we had helicopter money. Why is it not enough at the peak of the market?
Well, ya gotta ask WHY the Fed is increasing the repo in the first place. Maybe the banks are in fact going through a cash crunch, or the credit squeeze is more severe than we (whoever we might be) are led to believe. If that's the case, this ain't a bullish but a bearish news for the market.
Let's head down to the cellar quick smart and put on yur crash helmet while yur at it, rattatattat.
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I think that gap might get filled sooner than later... todays price action so far showing the bulls unable to hold opening price.. will see how it closes. That's the important thing