Liquidity Trader Complete

Reports on the Fed and Treasury, Primary Dealers, real time Federal tax collections, foreign central banks, US banking system, European banking system, and other factors that affect market liquidity. Resulting market strategy recommendations. Includes all reports from Federal Revenues Pro Trader, Macroliquidity Pro Trader, and Treasury Supply and Demand Pro Trader. 8 reports each month. Click here to subscribe. Subscribers, click the post headline to access reports.

The Fed Sings A Sweet Tune – Here’s Why It Will Lead To Market Bitterness

Prior to the onset of QE in 2009, a normal reserve position meant tight reserves. There were virtually no excess reserves on the Fed’s balance sheet. That means that the drains will continue until the balance sheet reaches a tight reserve position. Except that that can’t happen because the markets and the economy would have…

December Tax Collections Reveal Wall Street’s False Economic Narrative

The media had been excusing the stock market decline, and explaining the bond market rally in December by saying that investors were worried about slowing economic growth. Federal tax collection data for December shows that that is a false narrative. The data and charts show why this false narrative is dangerous to your financial health.

Here’s Why You Shouldn’t Buy Bonds Despite Bullish Signs on Their Charts

Longer term Treasuries began to rally in early November and that rally has continued, fueled largely by the big liquidation of stocks over the past couple of months. There’s no sign yet of any real easing of tightening conditions in the money market. The uptrend in short term rates is intact. But there are bullish…

As Fed Balance Sheet and Interest Rates “Normalize,” So Too Must Inflated Asset Bubble Prices

Macroliquidity has stopped growing and is on the verge of contraction. Meanwhile, world central bank liquidity has been in a declining trend since the second quarter of 2018. Bear markets commenced around the world then. The US lagged, but is quickly catching up. With the trends in place, not only will the Fed normalize its…