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World Stock Markets Trading Discussion - Underwhelming uptake


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All Ords 5-day chart

big.chart?nosettings=1&symb=AU:XAO&uf=0&

http://bigcharts.mar...com/default.asp

 

Seems like we're just marking time until Christmas/New Year is done and dusted.  All Ords closed +0.6% with sectors ranging from Utilities +1.7% down to IT -0.8%

Over in Asia, China +0.2% Hong Kong +0.8%, Japan -0.1%, India currently +0.4%.

UK/Europe heading south: FTSE & DAX flat, CAC -0.3%.

 

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THE FED AS HEDGE FUND SANTA...........PART XXX PLUS ONE

So the FED continues it open ended REPO intervention.

I'm sure there are a lot of relieved hedge funds out there.

Not having to dump their leveraged treasury positions in a sudden "Liquidation" event.

The cheap repo funding party continues.......for now.

But for how long.....all parties eventually come to an end.

The Wall Street banks would also be quite relieved given their large treasury holdings.

Santa Fed loves you and has your back!!!!!!!!!!!!!!!!!!!

A very merry and safe (SAFE FROM CAPITAL LOSS) CHRISTMAS TO YOU ALL!!!!!!!!!!!!!!!!

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The Fed is now in the repo market forever or as long as the structure of the markets and holdings of the banks require it.  The amounts have no limit. If a trillion are needed a trillion it will be. That's my take.  There is zero political opposition and the old strictures against monetizing government debt which constrained the Fed have been abandoned.

The only questions going forward now are:  

When does the Fed  resume buying long dated issues for POMO?  Next year I say

When does the Fed start buying corporate debt? 

When does the Fed start buying equities?

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I remember the immortal words of Beardrech of blesses memory. 

His brother worked for the Fed. 

The words were, "Endless liquidity." 

It is, quite simply, welfare for the rich. 

Now it is 9 p.m. here in Barcelona. Time for dinner!

 

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