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US Traders Wake Up to Overnight Selloff and BTFD, As Trained


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The ES 24 hour S&P futures sold off overnight, but US traders woke up this morning and bought the effin dip as usual. It remains to be seen if they'll be sustained or punished when regular trading opens. The key area to watch for a rally signal would be 3920-30. If they clear that, it would be good to go. Perhaps all the way up to 3950. OK. I keed. I keed. 

But if they then cleared that, they'd have some running room. 

On the downside, 3865-80 looks like the key sport area. Break that, and bears get the ball with running room to 3835 or so. 

In short, the trading range still rules as we await the FOMC curicus and Powell Dog and Pony Show on Wednesday. 

Stay tuned. I am working on a Technical Trader update. Be back here with more in an hour or so. 

-l2sw

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35 minutes ago, Jorma said:

A lot of heavy lifting in the Liquidity report Lee.  Good work.  They sure have made a mess of things.

We have to admit that Covid was a disaster. I'd say they over did it by 2 or 3 trillion $.

Thank you! Means a lot to me! 

(I don't get many compliments on my work. 😉)

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The Fed injected nearly $300 billion into the banking system last week. That put in place at least a temporary detour for stocks. That detour will be redirected this week as a result of the FOMC circus and Powell Dog and Pony Show. Here’s what to look for, and what to do about it.

Non subscribers click here to access.

Technical Trader subscribers click here to download the complete report.

Not a subscriber? Get price and time targets, and weekly swing trade chart picks, risk free for 90 days! 

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96% of crypto coins are crap, but bitcoin is not since its just finite asset like gold. BTC, like gold, cant be used for transaction so its not feasible to use it in daily life activities. It just cost to much and its better to use other tools like fiat money and credit/debit cards.

Bitcoin should have value as long as people see it as a store of value. And it looks like that's exactly what it is.

Others crypto, especially those tokens release by somebody, celebrities are just a crap.

I also see space for some fluid crypto, maybe like ETH, to take center stage as a tool to handle daily life transactions. but thats it. nothing more.

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Lee,

Your liquidity report belongs in the smithsonian museum of natural history. This report nails it. Identifies the potential fallacies of the US financial system's dominance and speculative frenzy/crash that ensued.

 

Classic line........

"So the Fed avoided immediate crisis in 2022 when it started QT by not requiring the dealers
to stand in front of a firing squad. Instead, the Fed just water boarded them."

 

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3 minutes ago, potatohead said:

Lee,

Your liquidity report belongs in the smithsonian museum of natural history. This report nails it. Identifies the potential fallacies of the US financial system's dominance and speculative frenzy/crash that ensued.

 

Classic line........

"So the Fed avoided immediate crisis in 2022 when it started QT by not requiring the dealers
to stand in front of a firing squad. Instead, the Fed just water boarded them."

 

Thank you sir! 

Potatohead is referring to How to Play When Fed Changes the Game, Not Just the Rules

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2 hours ago, Jorma said:

A lot of heavy lifting in the Liquidity report Lee.  Good work.  They sure have made a mess of things.

We have to admit that Covid was a disaster. I'd say they over did it by 2 or 3 trillion $.

Thank you! Jorma is referring to How to Play When Fed Changes the Game, Not Just the Rules

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13 week bill rate was below Fed Funds on Friday. Backed up to it today. If Fed raises even a quarter, it will be out of step with the market. It has been playing catchup for the past 15 months. 

Honestly, I have no fucking idea what they'll do, and neither does anyone else who isn't God Man Sacs or some other Primary Dealer. I guess it all depends on what message they decide they want to send. 

By the way, God Man says no increase. Who am I to argue? How to Play When Fed Changes the Game, Not Just the Rules

-l5om

How to Play When Fed Changes the Game, Not Just the Rules

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