S&P futures are mounting another comeback attempt this morning in Europe, aided by $55 billion in quasi QE from the US Treasury yesterday, with another $41 billion coming tomorrow and $25 billion next Wednesday. Just one problem –of many– the money ain’t going where the Treasury wants it to.
And that is a catastrophic problem for our financial stability.
The Treasury will inject still more cash into the market, on top of the $96 billion it already staged last week. It announced on Tuesday…
The good news is that the 13 week cycle appears to have entered an up phase. And it did so before materially breaking the previous…
The good news is that the 13 week cycle appears to have entered an up phase. And it did so before materially breaking the previous low. The bad news is that 9-12 month cycle indicators are showing no signs of strength early in this up phase. Here’s what it means, and a suggested trade.
In WW2, the Allies- US and Brits, bombed the crap out of the neighborhood where I currently live. Here’s a little background about my neighborhood. And speaking of bombing, take a look at this market in the wee hours this morning.
And shoulders over 3 weeks. Completed, and busted. The thing measures to about 3805. The 5 day cycle projection points to 3855-70. But there’s a fly in the bear’s ointment.
We may be skating on very thin ice here, but the weight of the evidence still supports a weak bull case for the near to intermediate term. So I’m adding buy picks on the chart pick list and adjusting trailing stops to account for the risk.
The Treasury is injecting more cash into the market. It announced today that it will do a second round of T-bill paydowns next week, adding another $41 billion in T-bill paydowns, to be settled on February 25. This is on top of the just announced $55 billion T-bill paydowns settling on February 23.
5 day cycle projection 3932.
Bears had a shot there. Couldn’t take it home. But they are still in the game if bulls can’t take it past 3928.
To post your observations, and snide, but good-natu…
And I’ve spewed a whole lot of words over the past 3 weeks. Scary words. Words including warnings that one of the titans of the…