And apparently, I was the sucker, capitulating on my longs.
But alas, New York premarket trading is just getting ready to roll, and an upside breakout isn’t guaranteed, as the 24 hour ES, S&P futures, move in a narrowing triangle, liable to trickle out the apex. At these moments we pause for a moment of silence in memory of the great racing driver, Dick Trickle.
Thank you.
Now, here’s the maddening chart. Have you been manipulated? I sure have.
Meanwhile, we noted yesterday that the Treasury is slamming the market with supply, much to my surprise. With the debt ceiling preventing an increase in total debt, I had forecast that there would be T-bill paydowns. Instead, the opposite is happening. I will have an in depth report on that, including why they might be doing it, and what it means for the outlook, in Liquidity Trader, to be posted this afternoon.
I had noted that I surmised that the Treasury might be doing this to keep T-bill rates from falling, sending the market a signal it did not want to send. We got this reaction yesterday from Jorma, who I think has been here even longer than I have. He was just waiting for the rest of us to show up.
15 hours ago, Jorma said:I suppose but I see no reason why they wouldn’t want rates to fall since 95% of the populace knows the Fed is raising rates. Falling or steady market rates have nothing to do the fact that everyone knows the Fed is raising rates. This is the Alice In Wonderland state of our world. Everyone also knows that higher rates are required to fight inflation so the Fed has to fight inflation by raising rates. If rates happen to fall when they are raising rates, all the better.
For moron the markets, see:
- Swing Trade Screen Picks – Here are Two on the Buy Side that Stick Out February 6, 2023
- Rally Looks Great But Don’t Chase It Now! Here’s Why February 6, 2023
- SOS – Goldtanic Hits Iceberg, Ship Sinking February 5, 2023
- Composite Liquidity Should Be Bearish, Here’s Why It’s Not Right Now January 26, 2023
- Long Live the Bear. The Bear is Dead January 17, 2023
- A Funny Thing Happened on the Way to the Debt Ceiling January 16, 2023
- Withholding Taxes Fell Sharply in January February 3, 2023
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
