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Waiting for the Dough Day 2 – 1/31/24

This is a syndicated repost published with the permission of Stool Pigeons Wire at 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.

Today is the grand finale of the 2 day FOMC tent revival meeting. It will climax with the regular appearance of Load Jaysus before the assembled masses at 2:30 PM ET, to. He will explain the proclamation the high priests of monetary policy hand down at 2 PM.

The only thing that will matter is whether they announce any change of plans regarding balance sheet reduction. All else is fluff. The end is coming, o ye sinners. Prepare to meet thy doom.  The Danger Is that the Rally is Narrowly Based

In the meantime, Partay On, despite the issuance of $42 billion in Treasury coupons today, and $58 billion in T-bills in the next week. At least.  And watch that RRP slush fund drain down. Tick tock. Z Day cometh. Fed Balance Sheet Right Now Says Bears Should Get Ready to Rumble

Meanwhile a few traders in the ES 24 hour S&P futures had second thoughts in the Asian session overnight, but as long as they’re above 4897 when NY opens and 4899, when it closes, then no harm, no foul. This remains a bullish setup.

If the uptrend lines hold, then we can look for at least a test of the high, and with some likelihood that they’ll take that out, then 4950. Beyond that, 4980. I don’t think that we’ll see 5k today, but stranger things have happened on FOMC day.

Thinking about the possible downside, wot? They’d have to break 4890 for starters, then there’s a big spport zone in the 4860-70 range. Can’t imagine that, and really can’t imagine it breaking.


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