Jump to content
Sign in to follow this  
aussiebear

World Stock Markets Trading Discussion - Toned-down tempo

Rate this topic

Recommended Posts

big.chart?nosettings=1&symb=AU%3AXAO&uf=

http://bigcharts.mar...com/default.asp

 

 

A general waning for All Ords with the index finishing -0.1%.  Utilities +0.8% was out in front followed by Miners +0.7% with IT -0.6% and Financials -0.5%.

Over in Asia, China and Hong Kong +0.4%, Japan -1.3%, India currently -0.2%.

 

 

On to UK/Europe:

 

 

big.chart?nosettings=1&symb=UK%3AUKX&uf=

 

 

big.chart?nosettings=1&symb=DX%3ADAX&uf=

 

big.chart?nosettings=1&symb=FR%3APX1&uf=

http://bigcharts.mar...com/default.asp

Share this post


Link to post
Share on other sites

30 minutes into the week

 

and the first itty bitty dip already bought

 

the only "former" Big Boy allowed to go down is GE

Share this post


Link to post
Share on other sites

Another rockem sockem day on Wall Street. 

Share this post


Link to post
Share on other sites

Fed still buying some MBS. Just less than before. They're cutting $4B a month in purchases. That will rise to $20 B a month over the next year. Which will leave virtually no purchases at all. 

 

 

So instead of the now extinct, I think correct me if I am wrong this month, Fed mid month MBS purchases we get $19.3bn in new Treasury supply this week.

 

https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm

 

Not exactly a killer, More on the order of drip drip drip.

Share this post


Link to post
Share on other sites

5 day cycle projection 2593. 

Share this post


Link to post
Share on other sites

Fed still buying some MBS. Just less than before. They're cutting $4B a month in purchases. That will rise to $20 B a month over the next year. Which will leave virtually no purchases at all. 

So if I understand this correctly, their reduction of the balance sheet/liquidity is really a slow motion slight of hand trick. Just like raising interest rates.  They are still adding liquidity but at a reducing rate over time?

Share this post


Link to post
Share on other sites

No. They are shrinking the balance sheet for real. The MBS reductions are only 40% of the total cuts, and they will still result in shrinkage because MBS are naturally paid down every month. The reduction of replacement purchases will cause the balance sheet to shrink. That's real monetary draining. 

 

I write about this regularly at Sure Money. 

 

https://suremoneyinvestor.com/2017/10/look-for-a-long-term-red-lampp-signal-next-week-and-start-shorting/  

 

https://suremoneyinvestor.com/2017/10/its-just-possible-that-ive-featured-your-burning-question-here

 

https://suremoneyinvestor.com/2017/10/look-for-a-long-term-red-lampp-signal-next-week-and-start-shorting 

 

https://suremoneyinvestor.com/2017/09/we-saw-the-feds-major-announcement-coming-heres-what-to-do-now/

 

Sign up for the newsletter and they'll deliver it to you as soon as published a few times a week. This is a subject that I'll be hammering on as time goes on. 

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  


Stock market portfolio giving you the runs? See Dr. Stool.

Take a subscribatory!
Download 
The Anals of Stock Proctology now!



The Daily Stool - Stock Market Message Board
Stool's Gold- Gold and Precious Metals Forum
Look Out Below Message Board

Support your local Stool Board.


The Al E. Greenspeuman designer line at Stoolmart. Get yours today! Click here now!



Old Stool Depository


The Wall Street Examiner
Subscribe to the Wall Street Examiner
Contact Us




Market Quotes are powered by Investing.com.
×