It validates my forecast from a couple of years ago that the Fed’s RRP fund was a slush fund, aka RRPSF, for the markets. Every day, the direction of the amount of RRP outstanding and stock prices are perfectly inversely correlated. When stock prices fall, the RRPSF increases, and when stock prices rise, the RRPSF declines.
We need to start doing some basic TA on it. You know, trendlines, support and resistance, good stuff like that. Like this chart that I post at Liquidity Trader, along with other monetary indicators that clearly correlate with stock prices. This one shows the RRPSF on an inverse scale so that you can see the correlation with the trend of stock prices. Next update coming soon.
Meanwhile on the hourly chart of the ES, 24 hour S&P futures, the 9 day downtrend line has been broken, but the market has yet to establish a higher high in that trend. It needs to clear 4522 to do that. I don’t think that it will, but what I think is of no import whatsoever. The market is the only decider. Under the Big Top
Over in Bondland, yields are still trending up despite the pullback of the past few days. If the 10 year yield ever clears 4.34 (or should I say “when”), godhelpusall. More Supply is Just a Lie But Withholding Weakens
For moron the markets, see:
- Gold Sets Up August 8, 2023
- All We Need is a Few Good Shorts August 7, 2023
- Under the Big Top August 7, 2023
- More Supply is Just a Lie But Withholding Weakens August 4, 2023
- Let the Scary Pictures On Primary Dealer Financing Do the Talking July 31, 2023
- Correlations Don’t Matter Until They Do, Like Now July 23, 2023
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