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Happy Day of the Dead II- 11/2/22


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Where's Coin Guy?

I have this vision of him departing port in a lovely yacht wearing a straw hat, listening to Jimmy Buffet, and not giving AF about what might be going on anywhere on land.

His chart remains "live" in my estimation.

So does my "Niners win the Superbowl" ticket from the Venetian in September.

My "Raiders win the Superbowl" ticket?

Not so much....

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18 minutes ago, Jorma said:

Is the 3 month T bill the proper measure against the Fed Funds rate?  That's what got me to thinking of the 30 day rate which I have at 3.57

 

Fair question, but the point is that the Fed is behind the real market in terms of the amount of increase. The Fed Funds rate is not a real rate. Trading in Fed Funds is minuscule, and only used by banks that need reserves, which is virtually nobody important. 

Fed Funds is for show. T-bills is for dough. 

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If we overdo the increases, then we have plenty of tools to support the economy afterwards. If we end the increases too quickly, then inflation will become entrenched and for that there are not many good tools. So from a risk management point of view, it is better to overdo the increases. - Powell

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19 minutes ago, SiP said:

Doc, does your chart with 4,2 implies that are we close to the end of the rate hike as the Fed catches up with the market and it's over? Of course unless this things keep keep climbing.

It doesn't imply anything. And the Fed's sham rate "hikes" are irrelevant. The bill rates are a meter of market tightness. The Fed just treads water trying to keep up. It's even further behind the market now than it was before. 

Surge in Withholding Tax Collections in October Indicates Faster Jobs Growth

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8 hours ago, DrStool said:

Meanwhile, the ES, 24 hour S&P fuguetures chart looks like this. Dead in the water, poised for a 3 day cycle upturn, but due to hit resistance around 3895 at about the time the smoke signals appear from the roof of the Fedican on St. Eccles Square. Then His Eminence Pope Jaysus the First will rise before the assembled multitude in the Square at 2:30 PM ET to pronounce his incantations in tongues. The masses below, and the markets themselves will writhe in ecstatic pain for a few hours, overnight even, and even into the wee hours of the morning as the besotted ecstasy of the fades into a sullen march toward whatever. 

 

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„A reporter made a blunder during the press conference but it ended up being the most-revealing moment of the press conference.

He told Powell that stock markets were responding positively to the FOMC and asked Powell about his reaction to that. In fact, markets were decidedly lower when he posed the question.

In any case, Powell didn't know that and promptly repeated that "we have a ways to go" on rates and "some ground to cover". Those were the same hawkish words he said in the statement that caused markets to fall.“

https://www.forexlive.com/centralbank/the-most-telling-moment-from-powells-press-conference-20221102/

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