Jump to content

Yet Another Stick Save- 12/21/22


Recommended Posts

Just when it looked as if the market would go over a cliff, out came the dip buyers again. I guess they can read the charts, because the turn came from just above a key long term sport level at 3761 and the juncture of several trend channel lines that just so happened to be almost exactly where the market descent stopped. It's magic!  

image.png

Was it the Fed? Was it the PPT? For one thing, the US Treasury has pumped an insane amount of cash into the market since December 6, a total of $107 billion in T-bill paydowns. Some of that was needed to help absorb mid month coupon issuance, but the rest is slosh. Play money for dealers and big hedgies.

About half of all T-bill holders are dealers, so you do the math. The US Treasury is pumping a gusher of cash into the accounts of securities dealers. And when they have excess cash, dealers will do what dealers do. Accumulate stocks at reduced "wholesale" prices, send their proxies out on CNBC and WSJ to tout their wares, using sexy made-up narratives about why stocks are a great buy here, mark em up and move em out to retail.

Retail to them isn't you and me, by the way. It's their horde of clueless institutional clients watching CNBC at their office desks, while pretending to earn management fees running your retirement money. They're the biggest, dumbest herd of them all. Wall Street likes to pretend that retail traders are the dumb money. But to the sell side, the only dumb money they care about are the dolts running trillions in retirement funds and wealth funds. They're the herd. The rest of us are the droppings that both the sell side and the buy side like to step on. 

Will this uptick carry through year end as usual? Why not. $17 billion of that $107 billion will hit the market on December 27. 

From the perspective of today's trading, in the US, 24 hour S&P futures, the 3830-3850 range is now the established battleground. Nothing happens until they get out of that range one way or the other. Below 3830, bears have a shot to take it back, perhaps as far as 3760. But if they clear 3850, the next target would be 3885. 

Not much excitement either way. 

Jingle Coin, Jingle Coin, Jingle all the way.  

For moron the markets, see:

If you're serious about the underlying forces of supply and demand that drive the markets, join me

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.

Link to comment
Share on other sites

  • Replies 62
  • Created
  • Last Reply

Tim Knight skewers Cramer regularly, for how wrong he is. Seriously, does the man get anything right?  

He is a dangerous psychopath. 

I am ashamed to admit that he comes from the township I grew up in. I had friends that lived around the corner from him. He attended my high school, six years after me. 

What a joke. 

 

Link to comment
Share on other sites

22 minutes ago, WTF said:

Snowing and cold AF here, -10F without the windchill.  Tomorrow is when the real cold is supposed to comes in... GREAT!!!  Stay warm & safe if you're in this cold blast.

You must be in Mini soda.  Or I'll ask a.

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...