The entire rally since October 2022 has been based on the rapid depletion of the Fed's reverse repo. When the RR drains rapidly, the money flows directly into the stock market. When the RR gains, it precurses a drop in the stock market.
At each pivot point the stock market has followed suit. We just had the most recent pivot on March 15th through today adding...
The entire rally since October 2022 has been based on the rapid depletion of the Fed's reverse repo. When the RR drains rapidly, the money flows directly into the stock market. When the RR gains, it precurses a drop in the stock market.
At each pivot point the stock market has followed suit. We just had the most recent pivot on March 15th through today adding...
From zetalon.com
The article by Ming Wong explores the significant financial consequences if the Overnight Reverse Repurchase Agreement (ON RRP) facility reaches a zero balance. Managed by central banks like the Federal Reserve, the ON RRP is crucial for controlling short-term interest rates and managing bank reserves. Following the trend depicted in the...
Money that has been parked at the Fed's Reverse Repo Facility due to the attractively high interest rates the Fed has set for money parked there has been on a steady decline since late 2022, and recently, this year we confirmed a breakdown of a Bearish Dragon, which led to a BAMM move down to complete a Harmonic M-shape.
This then represented an influx of...
In this video we look at the impending $800b T-bill issuance from the US Treasury to rebuild its cash levels at the TGA – will this lead to higher volatility in financial markets as reserves are taken out of the system?
Will concerns on bank credit kick back up, or will this prove to be a non-event?
We look at the indicators you need can use in TradingView to...
Money that is being parked at the Feds Reverse Repo Facility due to attractively high interest rates the fed has set for money parked at the facility has been on a steady decline since late 2022 and we have now confirmed a lower high and are looking to break down below a Bearish Dragon trend line that could be the initial trigger that gets it started to going down...
The Overnight Reverse Repos is breaking the bullish trend and slowly coming down.
This means liquidity is coming back to the markets and the overnight FED fixed interest rates is no longer that attractive for the parked capital.
I am watching this closely. This will tell me if I can remain bearish or if I should flip bullish. I can not express in words how important this is, especially if you understand what this chart means......
RRP unwind with raising rates could seem viable for a soft landing in the US equities markets and broader economy in 2022. Lots of major headwinds regardless.
Thanks for reviewing. Please let me know your thoughts. Just my personal thoughts and opinions, not financial advice or education. Cheers.
An increase in the reverse repo rate will decrease the money supply - ceteris parabis.
Commercial bank incentives to hide their funds with the RBI, decrease the supply of
money in the markets.
There is a limited leak from RRP Pool back and forth, but the overall trend remains
higher.
***This does not constitute financial advice of any kind as I am not licensed for such opinions***
The markets selloff on a shocking CPI print, but this is to be expected. The real shock comes when you realize how far we have to fall. S&P, DXY, and Gold are covered.
The crypto markets may have their underbelly exposed to sunlight as an ominous development is set...
Welcome Hyperspace Travelers,
I only post the most interesting "coincidences". To which, I regard; there is no such thing.
Can you find it? Look closely..
Don't tell anyone once you do...
It's our little secret.
SPX Target: 1000-800.
Our future is already mapped..
Is such an absurd notion possible?
Stay tuned to find out, whether in the shadows or in...
They're back.... and expanding while reducing liquidity once again as the Markets move higher.
Sopping up all the spooge that is Quantitative Finance aka - Financial Engineering..
Pejorative?
Hardly - the Market for Stocks is the Eocnomy.
Now more than ever.
Reverse Repurchases are a clear indication of excess liquidity in the
Banking / Financial System.
Money Center Banks have monies in excess after meeting obligations
to the following:
Liabilities
Investments
Lending
An increase in the Reverse Repurchase activity will decrease the money supply.
Reverse Repurchases mean that commercial banks are provided...
Remains in Trend for 2022 to $2 Trillion.
FED Supportive of collaterals.
No end in sight...
____________________________________
Monday Coupon Purchases begin the New Year
@ $8.7 Billion.
FED Balance Sheet - New all-time HIgh @ $8.791 Trillion.
_____________________________________
May your New Year be filled with Peace and Joy
Until 2022 - HK
Not much to add to today's commentary.
Fed Policy error, defense of the indefensible.
APPLE Hanging on by a thread.
Sell Confirmed.
________________________________________
Congrats to the True Believers
Entry, once again near Perfect.
