The Fed broke the record today for the largest ever single day net addition to the market liquidity pool, with a net add of $65 billion. It also resulted in the largest ever 5 day net addition. While it was a bad day, the cash from the Fed probably prevented a crash. The market weakness was even more remarkable considering that there was also a net paydown of $37 billion in Treasuries settling today, with more coming on Thursday. That flooded the Treasury market with cash, causing both short term rates and T bond yields to plunge. That again should cushion the market selloff. In normal times this liquidity alone would be enough to spur a rally. These are obviously not normal times. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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