Market

Reverse Repos – Cross All Time Highs @ 1.183 Trillion for FRED:RRPONTSYD by HK_L61

Not a Fan of Drama(s). Consider this antithetical to Drama.

Safety, a great deal of it is being bought in Size.

Both, The Federal Reserve and the Unites States Treasury are removing

it at a rapid pace – Liquidity.

This would appear counter-intuitive as the Equities Complex continues

to make ATH after ATH .

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From November 2019 to February 2020, the exact same pattern repeated.

Liquidity was removed, Banks tightened lending. The rest is history. It does

indeed repeat.

Then as now, Margin Debt had exceeded prior Highs, everyone was in and

heavily leveraged LONG.

The Put/Call Ratio had reached an extreme LOW. Complacency was abundant.

Market conditions then, as now created immense vulnerabilities.

The potential for a FLASH CRASH had never reached this extreme then. As for now,

the potential has never been higher.

Sentiment plays an important role as well… Confidence in the everything. Not simply

Stock, but our arrangements in every manner.

These are horrific at best, by any metric.

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Charts are not the end all be all. February 22, 2020 should have taught everyone this

simple edict. Accidents happen and although they may “Appear” in our Charts, there

is something FAR MORE IMPORTANT and that is the underlying Fundamentals.

It is more than fair to suggest the Federal Reserve can and will provide unlimited

support to the Equity Complex, Bonds, Real Estate, Money Markets as well as

support Fiscal Malfeasance by our Government.

To a point…

Global Equities look terrible, there is an accident ahead, a large and insidious event

that will arrive unannounced and undo what has been done at surreal expense.

It has been a long time – An extreme divergence between US Equities and Global Markets.

A large and important drop in Asia’s Equities Markets implies a contagion is developing and

with it a hyper selloff in global equities.

Divergences within our Equities Complex have NEVER been this extreme.

It is referred to as Capitulation, not by you or I – but by Global Central Banks under the

direction of the BIS.

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It is near.

Extreme Caution is warranted in everything.

There is no date, there is no time to project, A day, a week and even a month.

That said, when it arrives, gains will be lost and then some.

Everyone appears to be “Anticipating” this correction. They Hedge and become

fuel for the next squeeze of protection.

This is all that is driving this market now, nothing more other than the need

for a higher Fill.

It is be design and plan.

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Cash is a position, it is an exceptional one at times when one is confused or

inexperienced.

We are preparing for it now.

xoxo – Hunter Killer

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