Potatohead pointed out yesterday that the Fed’s RRPs dropped under $2 trillion. That’s down $275 billion since May 24. I’m working on a Liquidity Trader post that will get into that and explain why it’s bullish. It should be posted within a couple of hours.
This is NOT news of course. I’ve been warning about this ever since the RRPs were opened to the money market funds. It was always, “Once the RRPs start to drop, LTFO!”
I give myself credit, since no one else does. 😉 This actually represents the peak level of Maslow’s Hierarchy- Self actualization. Apparently, I am a highly evolved psychological specimen. 😂😂😂 Although I recognize that some of you do not agree. 😁
Meanwhile, I am behind on my work as my travels have been captivating. Prague is, I think, the most gorgeous city I have ever seen, and I have seen a lot of beautiful cities. Paris doesn’t count because it is a different thing, but among worldly cities, I’d rank Lyon and Lisbon as the two I find most beautiful. Nice, where I live, is right up there. It’s smaller and a bit less grand, but gorgeous, nevertheless. The Mediterranean and the Promenade des Anglais are spectacular and other parts of town are magnificent.
But nothing beats this. It’s insane. I walk around agape at the beauty of Prague’s baroque and Belle Époque architecture. And the sheer quantity, Wow. I have taken hundreds of photos, but I’m way behind on editing and posting them.
Still working on Budapest.
Yes, I took that photo from a place called Gellert Hill. OK, I juiced it up a little. 😊
Now, as to why you’re actually here. You want to know what the market will do today.
Here it is, based on the ES 24 hour S&P futures throw enough spaghetti at the barn door and some of it will lead the way to the promised land chart.
A guy criticized me for my charts being a mess. Like the market is supposed to be simple or something. The fucking guy should learn to read charts. It’s not simple. No language is. The market isn’t simple. People want simple. Fuck ’em. I don’t do simple. I do do the right answer. That’s what I’m shooting for. And getting the right answer requires drawing a lot of lines.
The answer lies not in what you don’t do, it’s in what you do do.
On that note…
This thing has gone parabolic. We’re now looking at a new 5 day cycle projection of 4460. There’s lots of resistance around there too. Swing Trade Chart Picks – Adding Late Cycle Buys
Wanna see something wild? Check out the 5 hour bars. Talk about parabolic. Seems like 4455-60 is a lead pipe cinch target today.
Meanwhile, those big hedge funds with those massive short hedges in the 10 year Treasury futures could be in for a world of hurt here if this trendline breaks.
I’m working on a Liquidity Trader report on this right now. Should be posted by lunchtime on the US East Coast.
Ciao for now. Gotta go get me some Trdelnik.
For moron the markets, see:
- Swing Trade Chart Picks – Adding Late Cycle Buys June 16, 2023
- Rally Broadens as It Gains Momo June 12, 2023
- Gold Set Up for This Cycle Low June 7, 2023
- Investors Breathe Sigh of Relief But D-Day Is Now June 6, 2023
- Incomprehensible, That’s What You Are June 2, 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
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