Stocks regained all of yesterday’s losses in spite of the immense barrage of Treasury supply this week. If this continues through the week one would be forced to conclude that animal spirits have returned to the market, at least temporarily, and that the Fed has done enough pumping to keep the system afloat for a while longer. That’s a big “if”. We still have to face a 294 day CMB auction and 5 year note auction tomorrow that will raise a ridiculous $72 billion in new money in one day. Then on Friday, they’ll sell the first 7 year note issue ever totaling $22 billion, again all new supply. 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.