Look at the Fed’s latest H.4.1 statement. They are paying 4.9% on $3.4 trillion on bank reserves; they are paying 4.8% on $2.6 trillion in money market mutual funds parked overnight through reverse repurchase agreements. Just think: The Fed is shelling out an annualized $291 billion on $6 trillion in cash to keep it from going into the real economy. It’s more than the Fed earns on its own portfolio so Treasury is advancing funds. How much of that interest being paid by the Fed is going to foreign-owned financial institutions?
@jcashmoney9123@JimJame74888138 That’d be wild. They even got me bulled up. Shorting for a small dip into midweek. Not anticipating the big one just yet.
@MikeWShell@mwebster1971@traderaider42 Probably. The video alone made it seem very weird (no pants, drink in hand) but the call gave context, seemed like he was trying to stay/play cool.
@swingtrader Tend to agree. Never short a dull market and the gyrations are anything but dull. We’re having a ton of volatility after an extended move up. At minimum I’d be cautious long.
@trenderer798@Jake__Wujastyk Where it gets tricky is if you use es we just hit top of range. Spy had that gap down on 12/16 but it wasn’t on a new week. Will be interesting for sure. I see a bull trap here but we’re really on the cusp of this flipping bull as well. Great post.
@RJRCapital Eh I’ll be honest in that I thought we’d get a lot more of a pop today given what you said. If this ends up pinning through the rest of the year with vol crush I’d say that’s not good for bulls.