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Messy Mass of Fed Data Makes Some Sense- Professional Edition

Thursday’s Treasury auctions again showed minor cracks in the façade with a weak indirect bid on the 30 year bond and a smaller indirect bid on the CMB than on last week’s CMB auction. The Treasury announced next week’s schedule, and it appears that new supply next week will be around $30 billion, up from just $1 billion this week. The light calendar of new supply this week helped to put a bid under stock prices. Next week there will be a little more pressure.

The Fed released its H41 report after the close, along with data on Commercial Paper and Primary Dealer holdings. Apparently the Fed is still doing its utmost to sterilize the bailout programs, but this week it appears that they added net cash of about $20 billion to the system. That was only enough to offset what looks like a similar amount drained last week. The flood of money printing that has been predicted by some isn’t happening yet. Until it does, any rally in the stock market should be short lived.

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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