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THE REPO WINDOW AND DEPOSITORY INSTITUTIONS In order to keep the party going they FED needs to lend to dumb money...the dumber the better..... The smart money is increasingly sitting on the sidelines and simply refuses to borow....no matter how negative rates are..... Who doubts that Robin Hood will qualify as a depository institution. Yep....the REPO window will be put at the disposal of all the Robin Hood day traders....

So back above 4400 after 420 (EST) MOAR COWBELL..........

Have a great weak end. I'll be in and out. Reports coming.

We have reached price perfection. They can close the market for good.

The stock market has reached the perfect equilibrium price. 4395.

Do they bang a cowbell everytime the SPX crosses 4400...........

Most of the time, China breaks have no impact on the US. It just depends on whether the government is threatening overleveraged wealth funds with a firing squad. Then they do sell their US assets. So you may be right. Just not yet. We'll only know if and when the US starts to sell off concurrent with Asia.

I need to irrimmend that. It becomes relevant to US markets at the point that it begins to generate margin calls.

I know. I publish Doug's reports, and read his exec summaries, every week. Much respect. But I often do not agree with him.

http://creditbubblebulletin.blogspot.com/2021/07/weekly-commentary-beijing-flinches.html

The pullback hasn't phased the hourly cycle indicators.

We hope. 😀 But I don't believe Bullard is correct. Unless they want to see the 10 year at 3% "fairly rapidly."

Is AMZN a four-letter word for schadenfreude?

Fed's BULLARD: FEELS FED SHOULD TAPER ASSET PURCHASES THIS FALL AND GO "FAIRLY RAPIDLY," FINANCIAL MARKETS ARE WELL PREPARED FOR IT Not sure about the market, but I am sure Lee's subscribers will be prepared.....😉

On the hourly, looks like they need to clear 3407 to then have a significant move.

30 minute bars and their indicators look... what else.... Bullish!

Irrelevant an immaterial.

The Chinese market had a bad week Japan and HK too. An X factor to keep in the back of ones mind. They beauty of Friday is by the afternoon all that can be forgotten as everywhere else is closed.

Talking about it is not significant. Doing it is something else altogether. Then we'll talk. We'll have to see who takes it, and what they do with it. Until then, only the dealers matter.

Also on the taper. I predict that no tapir will ever be seen in or near the Eccles Building.

I see the Fed is going to open the repo window to others besides the PD's. " Counterparties for this facility will include primary dealers and will be expanded over time to include additional depository institutions." Is that new? I doubt it's significant unless hedge funds and Blackrock will be deemed depository institutions.

ETF Suggestion of the Day Once apon a time I suggested an ETF stuffed with stocks the various arms of the US government was persecuting. On the basis htat they would recover when the persecution stopped. Hence the idea of the Tom and Jerry ETF was born. Well this idea can now be extended to China. How about the Whinnie the Pooh ETF Based on the same principles!!!!!!!!!!!!!!! Indeed DIsney could probably get into the ETF business.

GARBAGE IPO OF THE DAY Robbing Hood Now they will (If they can) turn it into a meme stock.

Here we go again. Another false breakout. Another plunge to the bottom of the range. We've seen this act before. It has all the earmarks of another developing megaphone pattern. Back in the old days, we called these patterns "broadening tops" because they invariably broke down into significant declines. Not any more. Megaphone patterns have become ubiquitous as the market trades in widening ranges. Like all patterns today, megaphones have the same meaning. We're going up. In modern technical analysis, if it's a pattern, it's bullish. Once the dealers are done shaking the trees, covering their shorts and picking up some long inventory for the next leg up. Sure those legs are getting shorter. Progress is slowing, reversal warnings are piling up. So what. It has been that way before in the past dozen years, and we've had only a couple of big breaks, including that one mammoth one of February-March 2020, of blessed memory. Here in this thread, we're only interested in the day to day. I cover the big picture outlook at Liquidity Trader's Technical Trader, which you can follow risk free for 90 days if you are a new subscriber. As for today, the overnight lows cracked the last couple intraday lows--they gotta make it look good-- but now have made a loop de loop and look headed back up. The 5 day and 2-3 day cycle projections are unmet at 4365, but hourly cycle indicators have curled upward. I don't know if they'll dip to 4365 or not, but if they do, and the hourly oscillators are at higher levels than the early overnight low, I'd bet on a minor low at that point. By the same token, if they don't pull back over the next few hours, and instead break 4404, then they'll probably retest yesterday's high. I see no reason to forecast a breakout from this week's range, either way. Meanwhile, big picture stuff. Prices Show Us Not to Argue with Mother Market Be Careful of that Yellow Stuff Chart Picks – Dipping Two Toes in the Meat Grinder How the Fed and Treasury Rig The Debt Ceiling Roulette Game Matters If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter. Here's a freebie on my reaction to what the Fed did this week. Fed Finally Starts the Standing Rippo Farcility

The Standing Hippo Facility?