Lee's Latest Free Thinking

Falling Interest Rates Illusion Leads Wall Street to Dangerous Wrong Conclusion

Short term interest rates have fallen sharply in recent weeks. Wall Street says that falling interest rates mean the economy is weak. Therefore the Fed will cut rates in July, and perhaps several more times this year.  Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through…

Liquidity Trader

We Knew the Treasury Paydowns Would Be Bullish, But What Now?

Last month in the Treasury Supply update (May 16) I wrote that the debt ceiling would continue to force the Treasury to pay down debt, short term T-bills in particular. I said that the paydowns “will continue until the end of Q2. That’s bullish for bonds, and possibly for stocks.” Follow the money. Find the profits!Liquidity is money. Regardless of…

Must Read

The Weakling

New highs are always informative from a technical perspective. What do the internals look like, are there divergences, positives or negatives, in short: How strong/sustainable are these new highs? Well, $SPX made […]

Slipping into G20

FEEDWelcome to the final five days of the first half of 2019. It’s a pretty quiet morning, in spite of the looming G20 meeting and the all-too-important China/US trade talks re-ignition. I was pleased to see that, following this G20, there isn&#8…

Palo Alto Home Prices Plunge

FEEDI’ve lived in Palo Alto since 1984. The local papers around here (the Palo Alto Weekly and the Daily News) are funded almost entirely through ads for real estate, so it’s pretty easy to keep one’s pulse on real estate by way of ho…