TWO PERFECT TRADING SET UPS PROVIDED BY THE FED
The Fed has provided two perfect trading sets ups for traders to go long in the past year:
1/ In late September 2019 when they threw $500 Billion of REPO to cover up the signal that the REPO market was out of money.
That money did'nt go back into bonds, it went straight into an already over valued stock market.
Pavlov rally number one.
2/ In late March 2020 when it threw $3 trillion at the markets.
Pavlov rally number two.
Given the way the Fed is behaving it will provide more opportunities in the future.