Macro Liquidity Pro Trader

Analysis of the major forces of macro liquidity that drive markets. Click here to subscribe. Subscribers, click the post headline to access reports.

Capital Flees Europe to US Markets and Banks

Virtually nothing has changed since the last update, other than an uptick in current US GDP for the second quarter. When economic data releases begin to reflect this next month, the market reaction should be negative as traders conclude, correctly, that the Fed will tighten. Markets top out when the news is good, because that is, in fact, when the Fed turns the screws.

Macroliquidity Growth Accelerates, Lifting Stock Prices and Market Sentiment

Macroliquidity rests just below the highs set a few weeks ago as the Fed is in the usual hiatus between its regular monthly MBS settlements that occur around mid month. The markets have fended quite well thank you without the Fed’s help and must continue to do so until mid April. Since the middle of…