The S&P futures are trading limit down at 2812 as I write this at 2:50 AM Eastern Time in the US.
I suspect that the PPT will be in action over the next few hours. Whether they’ll be able to get it above support at 2850 or not is the question. And if they do, can they keep it there? If they fail, then we’re in line for an epic crash.
The cycle lineup suggests a low now, at least after this morning’s crash burns out. Here’s what to look out for.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Everyone with a pension fund or 401K invested in stocks better hope the Fed becomes the buyer of last resort, and soon. Much has been written about what the Federal Reserve cannot do: it can’t stop the Covid-19 pandemic or reverse the economic dama…
Investors and leveraged speculators took the coronavirus panic straight to the bond market last week. Dealers, bless their little hearts, were long up the wazoo. Talk about smellin like a rose.
But somebody was short. Big somebodies. They’re dead. We don’t know where the bodies are buried yet, but the Fed will need to exhume them and fill the graves.
The coronavirus outbreak will eventually pass, though I have serious doubts contemporary finance will pass this test.
The crash in short and long rates is about the impotence of central bankers. Here’s why it will be long lasting.
It’s about time. I’ve been writing for years that the payroll reports are, mostly, irrelevant. That’s never how they are received, though, some months wherein the new low for the unemployment rate or the blowout headline payroll figure send risk markets soaring. Not this month. Can you imagine what the last couple of reports would […]
Futures are in crash mode on Brown Pants Syndrome Day 2.
This is a syndicated repost courtesy of theinstitutionalriskanalyst. To view original, click here. Reposted with permission. New York | Is the Federal Reserve Board killing America’s banks,…
The rally in risk-free bonds is quickly rendering irrelevant the policy direction of the Federal Open Market Committee
