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IDS World Markets Fri 7th March 08


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Here's the text of the Fed press release:

 

The Federal Reserve on Friday announced two initiatives to address heightened liquidity pressures in term funding markets.

 

First, the amounts outstanding in the Term Auction Facility (TAF) will be increased to $100 billion. The auctions on March 10 and March 24 each will be increased to $50 billion--an increase of $20 billion from the amounts that were announced for these auctions on February 29. The Federal Reserve will increase these auction sizes further if conditions warrant. To provide increased certainty to market participants, the Federal Reserve will continue to conduct TAF auctions for at least the next six months unless evolving market conditions clearly indicate that such auctions are no longer necessary.

 

Second, beginning today, the Federal Reserve will initiate a series of term repurchase transactions that are expected to cumulate to $100 billion. These transactions will be conducted as 28-day term repurchase (RP) agreements in which primary dealers may elect to deliver as collateral any of the types of securities--Treasury, agency debt, or agency mortgage-backed securities--that are eligible as collateral in conventional open market operations. As with the TAF auction sizes, the Federal Reserve will increase the sizes of these term repo operations if conditions warrant.

The Federal Reserve is in close consultation with foreign central bank counterparts concerning liquidity conditions in markets.

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8:30 gold smackdown    .    ..    ....    CHECK.

 

t24_au_en_usoz_6.gif

I have this huge urge to get out on this mornings market gapdown.

 

But this whole system is so screwed right now that there has to be a huge capitulation coming and I'd hate to miss it after all this.

Trade safe Stoolies.

649340[/snapback]

My thinking exactly. I've been leaving too much profit on the plate waiting for the big one and sitting through a turnaround. Not sure what to do, but I'm thinking it might be more profitable over the long haul to nick the nickels here and there than to wait for the big one and ignore those shorter trading ranges. It means a big change of attitude for me, and I'll probably learn it just at the wrong time. That fear of missing a big move is part of the attitude change. If it moves slowly, there's plenty of time to get back in. A missed opportunity means very little, especially if you're making something elsewhere. Anyway, this change is what I want to accomplish this year.
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Here's something else that just dawned on me. Until about 2 years ago, the Fed always did weekly 28 day repos. So even this isn't new. They cut back the 28 day term to 14 days at some point within the last few years, although I don't recall exactly when.

 

So it will be interesting to see if this additional $100 billion is really new money, or just more mumbo jumbo sleight of hand.

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Yup. Physical only ... no ETF's or equities. Maybe CEF, but not a whole lot. Something convertible to bullion.

 

Haven't quite figured out how to hold physical uranium. The neighbors will complain.

 

And my wheat pile is starting to ferment.

649342[/snapback]

Bottle it, turn off the lights, and use the 100 bottles of glowing irradiated beer on the wall as an alternate light source to count your gold by. Don't forget to apply for the energy saving tax rebate.
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Consumer Confidence on some tout index came in at 31.5 vs. 45 expected.

 

Carlyle halted overseas.  New margin calls "in substantial excess of those from Wednesday".

 

Off to a shining start here.  Now, if we can just get Insana and Bill Griffith on Crapvision together, today, it will be just like the '87 bonanza (except for the extra 15 pounds on me).

649321[/snapback]

 

 

And on them also :lol:

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Today, based on the thinking that I described in last night's WSE Pro market update, I am letting it all ride.

 

But if targets get hit, I will honor the targets, just like always.

 

If you have both a stop price and a target price, it takes the guesswork out of your trades. So each night wherever possible, I set both a target and a stop price on WSE Pro chart picks for the following day. I adjust them based on where the stock is in the context of the trend and cycle structures and what the indicators look like. If the indicators and price projections are very strong in the direction of the trend, I widen the target and stops accordingly. If the indicators are beginning to get iffy, and the trend is aging, I narrow the band.

 

That's been working pretty well.

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Yup. Physical only ... no ETF's or equities. Maybe CEF, but not a whole lot. Something convertible to bullion.

 

Haven't quite figured out how to hold physical uranium. The neighbors will complain.

 

And my wheat pile is starting to ferment.

649342[/snapback]

:lol:

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Yup. Physical only ... no ETF's or equities. Maybe CEF, but not a whole lot. Something convertible to bullion.

 

Haven't quite figured out how to hold physical uranium. The neighbors will complain.

 

And my wheat pile is starting to ferment.

649342[/snapback]

 

 

Are you loading up on MREs? B)

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Here's something else that just dawned on me. Until about 2 years ago, the Fed always did weekly 28 day repos. So even this isn't new. They cut back the 28 day term to 14 days at some point within the last few years, although I don't recall exactly when.

 

So it will be interesting to see if this additional $100 billion is really new money, or just more mumbo jumbo sleight of hand.

649346[/snapback]

 

 

It is part of managing EXPECTATIONS <_<

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from carl futia.........this guy is unreal......

 

Spiders - March S&P E-mini Futures: I got out of my long side trade at 1308 about 15 minutes before the New York close yesterday. This morning, after the Fed announced its intention to inject more liquidity, the e-minis dropped to 1292, a little below 1295 support. If the market can finish the day above 1295 the stage will be set for a rally inot the 1430-50 range. I still think that new bull market highs will be seen in the next few months.

 

http://carlfutia.blogspot.com/

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