3 replies to this topic

[redfoliage2]

Again it bounced back up after touching briefly the lower end of the range at 1405.

[arbman]

The daily repo is at $22.25B and $14.25 will expire within 2 days, the Fed's activity has come down from high $40Bs since Nov and the market has been struggling. There has been no pomo activity since late Dec. In the mean time, the dealers did some record amount of borrowing and it is now also going flat. I think they knew that there was going to be some sort of a pull back last week, or they created it and quite a few bears have been trapped due to the high trading range last week. However, I still see a lot of bullish speculation in the equity options, yet the volatility premiums are still rising, this is a very good place actually for an IT top and acceleration downward, however I believe the Fed might step in later in the month. This liquidity whiff I was expecting is only helping for another trading range at the moment without much upside... - kisa

[arbman]

btw, the treasury didn't do anything since January 5th with a $5B auction (result). The previous one was on Dec 21... There has been quite a gap in the gov't operations now and I expect some activity now, but I think the idea is to cool down the economy from here and lower the rates before the housing turns into a collapse...

[redfoliage2]

btw, the treasury didn't do anything since January 5th with a $5B auction (result). The previous one was on Dec 21... There has been quite a gap in the gov't operations now and I expect some activity now, but I think the idea is to cool down the economy from here and lower the rates before the housing turns into a collapse...

Due to the recent price development the SPX trading range is update: 1405 to 1418.