Reverse Repos - Cross All Time Highs @ 1.183 Trillion
FRED:RRPONTSYD
Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market Operations
Not a Fan of Drama(s). Consider this antithetical to Drama.
Safety, a great deal of it is being bought in Size.
Both, The Federal Reserve and the Unites States Treasury are removing
it at a rapid pace - Liquidity.
This would appear counter-intuitive as the Equities Complex continues
to make ATH after ATH.
_____________________________________________________________
From November 2019 to February 2020, the exact same pattern repeated.
Liquidity was removed, Banks tightened lending. The rest is history. It does
indeed repeat.
Then as now, Margin Debt had exceeded prior Highs, everyone was in and
heavily leveraged LONG.
The Put/Call Ratio had reached an extreme LOW. Complacency was abundant.
Market conditions then, as now created immense vulnerabilities.
The potential for a FLASH CRASH had never reached this extreme then. As for now,
the potential has never been higher.
Sentiment plays an important role as well... Confidence in the everything. Not simply
Stock, but our arrangements in every manner.
These are horrific at best, by any metric.
______________________________________________________________________
Charts are not the end all be all. February 22, 2020 should have taught everyone this
simple edict. Accidents happen and although they may "Appear" in our Charts, there
is something FAR MORE IMPORTANT and that is the underlying Fundamentals.
It is more than fair to suggest the Federal Reserve can and will provide unlimited
support to the Equity Complex, Bonds, Real Estate, Money Markets as well as
support Fiscal Malfeasance by our Government.
To a point...
Global Equities look terrible, there is an accident ahead, a large and insidious event
that will arrive unannounced and undo what has been done at surreal expense.
It has been a long time - An extreme divergence between US Equities and Global Markets.
A large and important drop in Asia's Equities Markets implies a contagion is developing and
with it a hyper selloff in global equities.
Divergences within our Equities Complex have NEVER been this extreme.
It is referred to as Capitulation, not by you or I - but by Global Central Banks under the
direction of the BIS.
________________________________________________________________________
It is near.
Extreme Caution is warranted in everything.
There is no date, there is no time to project, A day, a week and even a month.
That said, when it arrives, gains will be lost and then some.
Everyone appears to be "Anticipating" this correction. They Hedge and become
fuel for the next squeeze of protection.
This is all that is driving this market now, nothing more other than the need
for a higher Fill.
It is be design and plan.
____________________________________________________________________
Cash is a position, it is an exceptional one at times when one is confused or
inexperienced.
We are preparing for it now.
xoxo - Hunter Killer
Safety, a great deal of it is being bought in Size.
Both, The Federal Reserve and the Unites States Treasury are removing
it at a rapid pace - Liquidity.
This would appear counter-intuitive as the Equities Complex continues
to make ATH after ATH.
_____________________________________________________________
From November 2019 to February 2020, the exact same pattern repeated.
Liquidity was removed, Banks tightened lending. The rest is history. It does
indeed repeat.
Then as now, Margin Debt had exceeded prior Highs, everyone was in and
heavily leveraged LONG.
The Put/Call Ratio had reached an extreme LOW. Complacency was abundant.
Market conditions then, as now created immense vulnerabilities.
The potential for a FLASH CRASH had never reached this extreme then. As for now,
the potential has never been higher.
Sentiment plays an important role as well... Confidence in the everything. Not simply
Stock, but our arrangements in every manner.
These are horrific at best, by any metric.
______________________________________________________________________
Charts are not the end all be all. February 22, 2020 should have taught everyone this
simple edict. Accidents happen and although they may "Appear" in our Charts, there
is something FAR MORE IMPORTANT and that is the underlying Fundamentals.
It is more than fair to suggest the Federal Reserve can and will provide unlimited
support to the Equity Complex, Bonds, Real Estate, Money Markets as well as
support Fiscal Malfeasance by our Government.
To a point...
Global Equities look terrible, there is an accident ahead, a large and insidious event
that will arrive unannounced and undo what has been done at surreal expense.
It has been a long time - An extreme divergence between US Equities and Global Markets.
A large and important drop in Asia's Equities Markets implies a contagion is developing and
with it a hyper selloff in global equities.
Divergences within our Equities Complex have NEVER been this extreme.
It is referred to as Capitulation, not by you or I - but by Global Central Banks under the
direction of the BIS.
________________________________________________________________________
It is near.
Extreme Caution is warranted in everything.
There is no date, there is no time to project, A day, a week and even a month.
That said, when it arrives, gains will be lost and then some.
Everyone appears to be "Anticipating" this correction. They Hedge and become
fuel for the next squeeze of protection.
This is all that is driving this market now, nothing more other than the need
for a higher Fill.
It is be design and plan.
____________________________________________________________________
Cash is a position, it is an exceptional one at times when one is confused or
inexperienced.
We are preparing for it now.
xoxo - Hunter Killer