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Day of Infamy II 1/7/21

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1 minute ago, DrStool said:

There's zero need for repo when the Fed is cashing you out at $200 billion per month. 

They are still very long aren't they?

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This is an hourly chart of the ES- S&P 500 fucutures, 24 hour basis. As they say in my hometown of Philly, "Hard to believe, Harry."  It's like somebody took a bite out of the middle of the t

https://www.facebook.com/lee.adler.18/posts/10211270704860351 Trump is no laughing matter. He is a narcissistic, dictatorial fascist at heart.

1 minute ago, potatohead said:

Lee, a fed governor from your neck of the woods.

The Fed may cut its monthly bond purchases as soon as the end of this year: Philadelphia Fed President Harker

https://www.bloomberg.com/news/articles/2021-01-07/harker-says-fed-may-begin-paring-bond-purchases-in-late-2021

 

Yes. I have addressed how that might unfold in my Liquidity Trader Reports. 

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26 minutes ago, Jorma said:

They are still very long aren't they?

Absolutely. And it's all financed with private bank to bank repo. That's the problem. The Fed repo program is still available though. Could be revved up again when needed. 

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47 minutes ago, DrStool said:

Absolutely. And it's all financed with private bank to bank repo. That's the problem. The Fed repo program is still available though. Could be revved up again when needed. 

Which is what I was getting at. With coupons soaring "as needed" could crop up anytime.  Help me out here. I am looking for the cracks you keep harping about if TNX got above 1.  Well here we are.

Then again the Fed reiterated at the last meeting the repo desk is ready willing and able. So if it heats up what difference will it make. For awhile anyway.

 

 

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37 minutes ago, Jorma said:

Which is what I was getting at. With coupons soaring "as needed" could crop up anytime.  Help me out here. I am looking for the cracks you keep harping about if TNX got above 1.  Well here we are.

Then again the Fed reiterated at the last meeting the repo desk is ready willing and able. So if it heats up what difference will it make. For awhile anyway.

 

 

Right. 

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I'm seeing ferocious short squeezes on stocks that had just triggered sell signals and looked primed to break down in the past week or so. This is a bloodbath. I had a few of them and covered immediately the instant the sell signal reversed. For me, it was just a scratch. For committed shorts, it's amputation time. 

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5 minutes ago, DrStool said:

I'm seeing ferocious short squeezes on stocks that had just triggered sell signals and looked primed to break down in the past week or so. This is a bloodbath. I had a few of them and covered immediately the instant the sell signal reversed. For me, it was just a scratch. For committed shorts, it's amputation time. 

I get the sense that very few traders will profit on this disaster on the downside. Many have to be getting destroyed trying as you suggested.

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