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World Stock Markets Trading Discussion - Perplexed pendulum


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All Ords 5-day chart

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

 

All Ords lolloped along sideways to finish -0.1%.  Miners +1.8% moved into the lead followed by Gold +1.6%.  Financials/Healthcare were down the most, -1.1%.

Over in Asia, China +1.4%, Hong Kong +0.7%, India currently -0.5%.

Major launch on open for UK/Europe: FTSE +1%, DAX +0.9%, CAC +1.1%.

 

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

 

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For a long time I've remembered, well actually misremembered that 3/9/09 was the start of QE. That was however just the date of the low of the S&P.  I went looking for the history of the day and  there was not a peep about QE. It turns out QE in an official history sort of way had two start dates.

Per Wiki,  

"On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and agency debt. However, these purchases were to have no impact on the balance sheet, and would have been sterilized by Treasury sales by the SOMA desk. On December 1, Chairman Bernanke provided further details in a speech. On December 16 the program was formally approved by the FOMC, however their approval was not required as the SOMA desk was already authorized to acquire Agency debt and MBS as part of their OMOs. On March 18, 2009, the FOMC announced that the program would be expanded by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities. These purchases would be unsterilized and this date more appropriately marks the beginning of QE in the US.

Can't argue with that. 3/18 was the real start date. Lee do you have any recollection if word of the long dated Treasury paper purchases was leaked somehow on 3/9. 

My specific memory of that day,  or was it the day before, was watching C sit at $1.01 and thinking it's pretty dumb not to buy a slug or at least a few just because. I didn't.

Is that day and period still in the archives?

The first plan was clueless. It must be the Fed has no clue. Before then they had let the balance sheet shrink anyway with various plans to buy specific securities from specific players who were not  Primary Dealers.  Making the October plan especially clueless is I don't think the SOMA had $600bn in it to sterilize all the planned agency purchases. 

https://en.m.wikipedia.org/wiki/History_of_Federal_Open_Market_Committee_actions

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31 minutes ago, Jorma said:

For a long time I've remembered, well actually misremembered that 3/9/09 was the start of QE. That was however just the date of the low of the S&P.  I went looking for the history of the day and  there was not a peep about QE. It turns out QE in an official history sort of way had two start dates.

Per Wiki,  

"On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and agency debt. However, these purchases were to have no impact on the balance sheet, and would have been sterilized by Treasury sales by the SOMA desk. On December 1, Chairman Bernanke provided further details in a speech. On December 16 the program was formally approved by the FOMC, however their approval was not required as the SOMA desk was already authorized to acquire Agency debt and MBS as part of their OMOs. On March 18, 2009, the FOMC announced that the program would be expanded by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities. These purchases would be unsterilized and this date more appropriately marks the beginning of QE in the US.

Can't argue with that. 3/18 was the real start date. Lee do you have any recollection if word of the long dated Treasury paper purchases was leaked somehow on 3/9. 

My specific memory of that day,  or was it the day before, was watching C sit at $1.01 and thinking it's pretty dumb not to buy a slug or at least a few just because. I didn't.

Is that day and period still in the archives?

The first plan was clueless. It must be the Fed has no clue. Before then they had let the balance sheet shrink anyway with various plans to buy specific securities from specific players who were not  Primary Dealers.  Making the October plan especially clueless is I don't think the SOMA had $600bn in it to sterilize all the planned agency purchases. 

https://en.m.wikipedia.org/wiki/History_of_Federal_Open_Market_Committee_actions

Those were astute observations. I remember thinking - why is this taking so long to unravel??? It took two bubbles for me to realize just how long the "present bias" lasts. Scary stuff. I'm thinking Doug Noland during this period must have just been beside himself.

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