Jump to content

World Stock Markets Trading Discussion - Toned-down tempo


Recommended Posts

  • Replies 13
  • Created
  • Last Reply

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

Link to comment
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.

Link to comment
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?

Link to comment
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. 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...