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World Stock Markets Trading Discussion - Educated eclipse

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How could we not have a Santa Rally with this open ended repo flood from the FED.

How much so far????

400 billion.....500 billion......


Its a very Feddy Xmas

A happy Fed to all

Its print to the heavens

Its printing for the Wall

No hedge fund will lack

Cheap REPO for every 

Treasury filled sack.

But what about

The man in the street

Perhaps the Fed

Itself has over reached

Perhaps the Fed is the one

Who should be impeached.


I think Jay will get a very nice Xmas card from Donald this year.

He is sticking very closely to the asset inflation script. 


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All Ords 5-day chart




All Ords saved by a consolidation ... The index closed -0.3% with Gold +1.5% remaining the main gainer.  Energy -0.9% was down the most with Consumer Staples next, -0.8%.

Over in Asia, China -0.4%, Hong Kong +0.3%, Japan -0.2%, India currently +0.1%.

Upwardly mobile for UK/Europe: FTSE +0.3%, DAX +0.4%, CAC +0.2%.


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Alternative title (The REPO market activity explained in a couple of easy sentences)

The FED is conducting open ended REPO as a rather sneaky and underhanded way of funding the federal Governemnt's 

$1 trillion annual budget defecit.

 If it does not do so the treasury market will fall rates will go up and this will puncture the stock market.

This would likely cause a recession in 2020.

I will let you guess what that would do for the President's re-election chances (hint "Not Good").

Without the FEDs intervention the REPO market would find its own equilibrium but at a much smaller size.

Which would be a lot less profitable for Wall Street.

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The rain is falling. The winds are howling. It's an inside day for me. Chance to get work done ahead of schedule. 

I'm still in Marseille. This town is a real circus. Heading up to Aix-en-Provence for the day on Saturday, then on to Antibes on Monday for a few days. 

Jimbo has it nailed as usual. 

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Based on the projections, the move is finished, but the cycle indicators show no sign of a downturn yet.  

Need to crack 3218 for starters.  If they don't, look for another upleg toward the end of the day. 

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The relentlessness of the rally is something to behold, but it's not at all surprising. 

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ALL Time Highs on a Friday......before Christmas........On op-ex day.........

FED, et al.   printing.........(adding free liquidity to the Cartels)


why would anyone think otherwise..........

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Looked at FedEx's cash flow statement the other day

Where is the free cash flow??????????

There isnt any!!!!!

Market cap of $40 billion and does not produce any FCF because of massive annual capex consumes its entire operational cash flow.

This company needs to cut expenses by $3 Billion a year to justify its martket cap.

Because  right now the market cap is completely unjustifiable.

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