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Perp Returns to the Scene of the Crime 3/17/23

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.

Was yesterday destined to be a failed breakout? Only the Shadow knows. Stay tuned to the latest episode of Return to the Scene of the Crime on your local Capital Stoolcasting Company radio station. The rest of us will know soon.

My guess would be that if they get back over 3945 on the ES 24 hour S&P futures then they can establish an uptrend. Bailout or Not, Stock Traders Are Should Give the Fed, Treasury, and FDIC the Finger March 13, 2023

-kiu8

Don’t Fight the Fed is the Rule Number One, but the problem is that it’s not clear what Fed policy is. The bank rescue has already flooded the system with cash, but it’s not by the usual Primary Dealer conduit, so its financial market effects won’t be the same as usual. And for now, they’ve limited the financing to a one year term. It’s not, at this point, seen as permanent money. It’s more of a bandaid.

So how do we not fight the Fed if we don’t know what the Fed is doing. I’ll address that in the Composite Liquidity Update to be posted soon at Liquidity Trader- Money Trends .

The Treasury market hasn’t decided yet if the bank run crisis will be self mitigating. If the 10 year yield drops below 3.40, it could be. The Fed is now providing unlimited funding for banks to buy Treasuries, but a certain level of public panic would be necessary to keep bond prices rising and yields falling. Systemic Meltdown Under Way As Dead Bodies Finally Start SurfacingMarch 12, 2023

-kiwu

Gold has regained its safe have status, and then some.  Gold Works On High Base March 14, 2023

-kiy4

 

BTC too. This massive base breakout measures to 34-35k.

-kiys

With the Fed flooding the world with USD again, I would expect the EUR to hold at $1.06 and start higher. What I expect doesn’t matter. Because the ECB might do something equally stupid and destructive so as not to let the EUR appreciate too much. I don’t try to predict what clown central bankers will do. I just want to know how much money they are pumping into, or or rare occasions draining from, the world banking system.

For now, the market is waiting for a sign from Madame LaGarde. If the EUR/USD falls under 1.05, the target would be 1.00 again. But if it holds and moves up, first 1.10, then da moon?

-kj1-

For moron the markets, see:

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