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Number to Watch as Hope Springs Infernal, Mourning Moment of Truth 12/9/22

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Any way you slice it, coming into the NY open this morning, 3978 is the number to watch. It’s the apex of apexes. And the direction it takes from there is likely to define the rest of the day, if not more.

Of course, there’s always the opportunity to honor the memory of the late, great Dick Trickle.

zsdnf

For hopeful bears, I would add that they need to take out 3966 to get anything going on the downside.

Meanwhile, the T-bill market is telling us that there’s excess liquidity this week.

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Where’s it coming from? Not the Fed’s Reverse Repo slush fund. It’s growing again. And of course, the Fed is sucking cash out of the system week by week.  By process of elimination we can only gather that it’s coming from borrowing. Margin and repo. Leverage on leverage.

Of course, some cash came from the liquidation of stocks earlier this week. That started to be redeployed yesterday as bull hope springs infernal.

It won’t end well, but it can go on until it reaches exhaustion. We’ll depend on the charts to tell us when that is.

For moron the markets, see:

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