The last few remaining shorts ran for cover on the Fed’s announcing that it was going Conehead this morning. But here are the only things that matter for traders today
We knew this was coming. The Fed has to finance the $2 trillion econonmic rescue borrowing. The market can’t do it. So the Fed must print the money to buy it.
This all in gamble better work. Because if it doesn’t…
Check this out.
I can’t even. And still, the stock market melts down.
We are so effin doomed.
Now that the US Government has delayed Tax Day for 3 months, the April tax windfall won’t happen. That cash fuels temporary Treasury debt paydowns which in turn fuel seasonal financial market rallies. Not this year.
It seems like the market wants to base out here. But I have a sense of foreboding when I look at the hourly chart. Maybe that’s bullish. I’m often my own best contrary indicator.
New York prices are gapping and reversing daily. It’s madness if you don’t stay up all night trading the fucutures. The dead bodies are floating to the surface.
Where all that Fed cash is going, and where the market is going today.
When the Fed first dropped its biggest Stupid Bomb in history announcing that it would offer a cool trillion a week in term repos, I warned that it was the wrong medicine for the wrong disease and that there would be few takers.
Little did I suspect.
The Fed pretended to fire a bazooka on Sunday with its announcement of $700 billion in market intervention in outright purchases. But it was really a popgun. The futures went limit down again when the market opened in Asia last night and have stayed there.
As fast as they have come down, they have gone up twice as fast overnight. Here’s what it means for today.