S&P futures are surging again. Cornohaha VIrus is cured! Sell the news?
Withholding tax collections are soaring. But despite that and the massive stimulus of skyrocketing government outlays and ever widening deficits, the ‘conomy is only so-so. Here’s why, what it means for liquidity and the markets. And of course, what you should do about it.
S&P futures are bonering. They hit support yesterday, and surprise, surprise, the dip buyers were out in force. Well, not a surprise actually if you recognize that the Fed pumping $100 billion a month into dealer trading accounts permanently tilts the playing field. Doesn’t mean that the market can’t go down, just that it probably won’t stay down for long.
The question is, “For what?” Here’s the answer, not in so many words. Subscribers, click here to download report. Try Lee Adler’s Gold and Mining…
The PBoC did a nice job of stopping a worldwide crash this morning. It pumped a gazillion yuan into their banking system and bankers instantly found a way to get it out of the country to bolster foreign markets.
At home, not so much.
There’s a lot of that infuriating, “On the one hand–On the other hand,” stuff in today’s report. On the one hand, I hate when that happens. On the other hand, it is what it is.
But the good thing is that there are clear parameters that should tell us what to expect as the week begins.
With the light supply and the Fed money putting the wind at their backs, Primary Dealers got a gift on top of that. Coronavirus. The panic that induced has driven money out of stocks and into bonds. Just what they needed.
Here I was in Zadar, Croatia enjoying myself, while there was a little matter of a Fed Meeting Statement, and Chairman Jerry’s Dog and Pony show.
Wall Street was waiting with bated breath, that’s right, bated, but I had taken an afternoon stroll around the harbor, on the lookout for baited hooks. Just like walking on Wall Street. You gotta be on the lookout for baited hooks.
Gold has established a trading range with clear parameters to indicate whether it’s in trouble, or on track. Subscribers, click here to download report. Try…
Thank the Fed’s Not QE program, and light Treasury supply! Supply and demand conditions for stocks and bonds have been as good as it gets. That’s about to change.