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V is for Victory, Also Vomit 9/27/23


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Weeks ago I began ruminating in my real work, that being Liquidity Trader, and in this case the Technical Trader reports, whether the coming 6 month cycle low would be a nice soft rounded bottom, or a vicious, violent V. There's really no way to know until the process is under way. I bet on the benign, despite warnings from my liquidity research that a very significant top was forming

Well, now we know. V it is. Victory for the bears. Vomit for the bulls. Early bottom pickers (comme moi) have gotten bombed over the past few days. You pays your money and you takes your chances. 

I am pleased that my liquidity analysis did show as early as July, the beginnings of an important stock market top. It has also led to a consistently and relentlessly bearish conclusion about the bond market. There's no way around the fact that until the Fed gets back into the business of buying Treasuries in massive size this won't change. Bond fund holders are doomed. If you are rich enough to buy them outright and hold them until they mature, then you don't need my research or anyone else's. Clip those coupons baby! 

Do they still have paper Treasuries with coupons?

In today's news, the Phillies are back in the playoffs and the Eagles are 3-0. I don't know whether this is bullish or bearish. But I'm happy tonight. I'm not fearing any man because I have seen the promised land. It's a roast pork sandwich shop in S. Philly near the stadium complex. 

As for the secondary matter of today's market, 4260 was the number to look for on the 5 day cycle projection. 4270 on the 2-3 day. Been there, done that, and there's a big positive divergence on the hourly oscillators on the ES, 24 hour S&P futures. So it looks like a bottom. But I said the same thing yesterday. Fool my once shame on you yadda yadda. 

11j1zr

Make no mistake what happened yesterday was a new bear market confirmation signal. 

11j21u

But the first leg is well advanced. Prime Time for Danger and Opportunity

As for swing trades, I will probably try- buy a few on the dip. But I'm pretty bloody from yesterday. Can I muster the stupidity to try again? If I do, I will hold with tender fingers, dripping with the fat and juice and fixins of a DiNic's Roast Pork sandwich. A sandwich that was once a pig. And now you know the rest... of the story. 

image.jpeg

 

As for the bond market, permit me to repost my now world famous Hindenburg Omen chart of the TLT that I first published 18 months ago.  The Rhymes of History

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For moron the markets, see:

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1 hour ago, potatohead said:

comments? Lee your report shows the declining bank deposits due to QT, what are the outer branches that Christopher is referring to?

 

Oh my goodness, I have no idea. I just look at aggregates. This is no surprise and is going exactly as forecast when the Fed started QT. It's direct cause and effect. Yet somehow, people are surprised that deposits are declining. It was a given as soon as QT became policy.

As far as parsing what kinds of deposits they are, that's above my pay grade. 😊 

Nor do I see the value in that kind of detail. But I have probably used the words crash and accident interchangeably in my reports for the last 18 months. 😊 That the Fed wouldn't change anything until after it happened. 

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