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her's whi covered, might be squeeze time


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#1 slupert

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Posted 08 July 2020 - 02:36 PM

https://www.ft.com/c...e7-a2a6784ab6f2



#2 da_cheif

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Posted 08 July 2020 - 03:10 PM

so why werent ur long......oops  i thought u r a sub ....my bad ....sorry



#3 Darris

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Posted 08 July 2020 - 03:32 PM

Thanks for the heads up.

 

The US Federal Reserve’s unprecedented 10-month intervention in short-term borrowing markets has been wound down, after the central bank successfully tamed volatile funding costs that had threatened to cause disruption across the financial system. 
 
The volume of the Fed’s operations in the repo market, where investors swap high-quality collateral like US Treasuries for cash, fell to zero this week after the central bank’s latest 28-day loan matured on Tuesday, taking a final $53.2bn out of the market.
 
Scott Skyrm, a repo trader at Curvature Securities, called it an “important” moment signalling a return to normalcy in the market.
 
The Fed first stepped in aggressively when a cash crunch sent overnight borrowing costs surging last September. Repo market participants said banks’ excess reserves had dwindled to the point that they were reluctant to make the overnight and short-term loans that underpin significant swaths of financial activity.
 
The central bank then scaled up its interventions when coronavirus disrupted markets. At one point, it was offering more than $5tn in short-term loans — although even during the worst of the volatility in mid-March, take-up peaked at $495.7bn, according to analysts.
 
The Fed’s repo activities have since been dwarfed by its other emergency measures, including the resumption of large-scale quantitative easing and the launch of multiple emergency facilities for corporate bond markets, US local governments and other markets.
 
“The fact that the Fed is willing to slowly and incrementally pull back indicates both that funding markets have normalised substantially since March and that in the long run the Fed wants to not have a larger footprint than they need to,” said Jon Hill, an interest rates strategist at BMO Capital Markets.
 
The recent decline in the Fed’s repo operations followed a technical tweak to the terms of its lending. Last month, the Fed slightly raised its prices for both its overnight and longer-term loans.


#4 12SPX

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Posted 08 July 2020 - 03:37 PM

Hmmmmm 6 billion in Pomo today, Monday 12 billion, you sure there stopping?



#5 Darris

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Posted 08 July 2020 - 03:55 PM

LOL, that is what Janet used to say when they said they were going to cut back, when you looked at the numbers, we were wondering "what reduction", LOL.



#6 slupert

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Posted 08 July 2020 - 04:47 PM

 

so why werent ur long......oops  i thought u r a sub ....my bad ....sorry

 

I say even if it squeezes we are still close to a top, if it hits 3200 it won't be there for long. So what's your call for the ST, how high are we going?



#7 gismeu

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Posted 08 July 2020 - 05:07 PM

[quote. So what's your call for the ST, how high are we going?[/quote]

3182, or whatever it was exactly, should hold at least 2 weeks.

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#8 pdx5

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Posted 08 July 2020 - 05:21 PM

3232 is my FF--- Easy to remember number smile.png


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#9 da_cheif

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Posted 09 July 2020 - 05:03 AM

 

 

so why werent ur long......oops  i thought u r a sub ....my bad ....sorry

 

I say even if it squeezes we are still close to a top, if it hits 3200 it won't be there for long. So what's your call for the ST, how high are we going?

 

high enuff to get AAII bulls to 80%   now 22%



#10 K Wave

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Posted 09 July 2020 - 07:49 AM

ES pushing back towards the swing highs this AM.

 

If they get taken out here soon, could turn into stampede upside after bears pathetic effort yesterday.

 

NQ all ready pushing out to fresh ATH.

 

YM hourly still looks very constructive as it wedges out above the 900 and now rising 200....just needs to take out and hold that 26200 area, and should be off the races, 25700 now the stop...


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