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Fed POMO Today – $7.501B Bill Purchase 2019-10-29

The Fed keeps imagineering money into existence, right on schedule. But a few hundred billion doesn’t buy what it used to anymore. Stocks are only up by the width of a pubic hair, and the 10 year yield, while down a similar hair, is still above yesterday’s breakout line. 

I’ll update my thoughts on this for you later today.

Liquidity moves markets!

Follow the money. Find the profits! 

Meanwhile, empty Fedwords:

Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.

https://www.newyorkfed.org/markets/pomo/operations/index.html

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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. 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 analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. 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. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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