Thursday 14 November 2019

Broadly headed

US equity indexes closed a little mixed, sp +2pts (0.1%) at 3094. Nasdaq comp' -0.04%. The Transports settled +0.3%. Near term outlook will lean to OPEX chop into the weekend.




Once more, the day began in pre-market with a market message from the US president..

US equities opened in minor chop mode, with Trump continuing...

... even taking a (rather amusing) little swipe at Powell.

Price action took a swing lower in late morning. The afternoon saw further chop, leaning fractionally higher in the late afternoon. Volatility picked up just a little, with the VIX settling +0.4% at 13.05.

Broadly headed

You recognise where we are broadly headed, right? The path ahead - within the twilight zone, is a dark and cloudy one, filled with a great many surprises. Some good..... most.. arguably not. 

Another flying monster, departing the capital of geo-political chaos

Along with a fair few others recently, yours truly has been wondering what financial institutions have been getting the Fed's REPO money/support? Powell (ironic name) of the Gold Anti-Trust Committee (GATA) requested the Federal Reserve Bank of New York to reveal the details. The response was not surprising...

The NY branch of Print Central said we won't find out what institutions have been making use of the REPO for around two years. By late 2021, the very institution/s currently in distress, might already have gone under. Deutsche Bank is the obvious prime candidate, but almost all of the UK/EU financials are on life support, as the NIRP policy of the ECB is ironically destroying the very institutions they were tasked to protect.

Regardless of Friday, and the remainder of the year, the broader path that we're headed remains pretty clear. The Fed will continue to print, lower rates, and keep its secrets. We'll also see ever more stronger capital market quakes.

The US President will likely become ever more tied to every little intraday (even overnight futures) equity swing. Right now, I can't see who will win the 2020 election, but whomever 'wins', they face monstrous fiscal problems. But hey, why worry, when the fed will buy whatever amount of bonds are issued?

On the plus side... its all very entertaining, not least the ongoing sideshow of Leon Cooperman and Democrat contender... Elizabeth Warren.

Headed eastward

A moment of serenity

A brief glimpse... between the clouds

Extra charts in AH (usually around 5pm EST) @

Goodnight from London
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