Yesterday, half tongue in cheek, I headlined our thread, Sell the News. But I noted that we didn’t know what the news would be. But still…
Now we know.
And so, the debt ceiling deal is done. Which truthfully, I did not expect. But apparently, there are still enough pragmatists to avoid finding out what the other side of this could have looked like. Hate to admit that there’s a part of me that would have liked to have seen it. It would have been interesting.
But the can has been kicked, and so we go on to face the coming deluge of Treasury paper that will hit the market so as to refund Peter, after the US Treasury robbed his money to pay Paul. That amounts to $600 billion or so on top of the usual $100 billion or so of new debt the Treasury must float on average every month.
We don’t yet know how they will schedule that. Take all the pain in the short run, or spread it out? We should probably have some idea in the coming days, and I’ll cover it and tell what we can expect as a result in upcoming episodes of Days of Our Lives As the World Turns General Hospital. AKA Liquidity Trader Money Trends.
Late this evening, the updated Daily Treasury Statement for May 31 will be posted. I’ll post an update on withholding tax collections for the month. It’s the best way to know how jobs and the US economy overall are really doing, and what direction they’re headed (last month here). I took a peek last week, and it wasn’t good. Moron this in the report to be posted
As for today, what can you say. Same old, same old trading range. 5 day cycle low is in. Today should be the up phase, whether in absolute terms, or just flat. That’s the question, up or flat, not to be or not to be. For it to be “up” must take out 4200 on the ES, 24 hour S&P fugutures hourly chart. For a downside surprise, need to break 4167.
Looking at a 2 hour bar basis, the perspective looks bullish. But more time and work needed to achieve that intraday trend breakout. That Seventies Show
The big question now is what’s gonna happen with the bond market. Because that will be the source of the systemic collapse.
And did gold just bottom? Gold Gets Closer to the Bottom
For moron the markets, see:
- That Seventies Show May 30, 2023
- Gold Gets Closer to the Bottom May 30, 2023
- Swing Trade Chart Picks – Numbers Lean Bearish, Charts Don’tMay 26, 2023
- Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead May 25, 2023
- The Most Widely Forecast Economic Disaster In History May 16, 2023
- The Big One is Coming May 3, 2023
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