Lee's Latest Free Thinking

Fed Strategy Is Incoherent, Lee Adler Says In This Strictly Business Podcast

The Fed kept rates unchanged, German factory numbers shocked, bond yields collapsed, safe haven assets found favour, and then on Friday equity investors woke up to a scary world. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know…

Liquidity Trader

These Charts Show How Primary Dealers Create Huge Risk as They Get Longer and Longer the Bond Market

The Primary Dealers continue to carry historically massive net long fixed income positions, purchased with debt, resulting in huge increases in leverage. They are hedging in the futures markets, and have reduced their Treasury longs a bit over the past month. But their overall net long exposure continues to grow. Here’s what history tells us about why that could be…

Macro Liquidity Indicator Charts Show Rally Not Long For This World

Macro liquidity growth has slowed to a crawl. The Fed and its cohort major central banks are a negative factor on balance. But runaway financial market speculation is driving a big surge in bank lending to finance securities purchases, and that’s providing self-sustaining liquidity. But debt driven trends eventually break badly. This report looks at the keys to showing when…

Must Read

The Reckoning

The big macro wheels are turning and everybody better pay very close attention. The Reckoning is coming. Best hope for a substantive China trade deal and a last minute save on Brexit […]

The New Resistance

FEEDThank God. What’s key at this point is to stay BELOW 2825. I know it doesn’t look that way, but it’s honestly a very important dividing line. As I’ve repeated ad nauseum, the financials remain my obsession. The breakdown her…