dChan
Anonymous ID: e08424 March 11, 2020, 1:38 p.m. No.8379963   🗄️.is đź”—kun   >>0011 >>0083 >>0084 >>0149 >>0256 >>0471

Market Report

 

Markets gave it all back today. The fear pron known as muh virus is such a cute excuse to allow the market makers to drop it back down. It recovered towards the close and sort of rolled off the last high as moar selling came in-but volumes are still very high (1.9x daily average on the DOW, NAS was 1.36x and SP500 just over the average). If you don't need to be in this- don't be. It is not for the meek or emotionally fragile. They know where this is going prior to the day's start. The Bank of England announced an emergency interest-rate cut of 50 basis points to 0.25%, and removed the so-called countercyclical capital buffer to free up to $190 billion of funds in banks that could be lent out to businesses dealing with the coronavirus. This is the second time the buffer has been cut since the 2016 referendum to exit from out of the European Union, known as Brexit, or British exit. In U.S. economic data, consumer prices rose 0.1%.

 

The entire issued debt complex is trading below 1% which is well below the current fed funds rate-this cannot be allowed to continue from their perspective. It's great for us though. I encourage everyone to re-finance whatever debt you have, if you are able. A big misnomer is that the FRB controls interest rates-they do not. They control when they are announced as it relates to Prime, what they set there own internal rates at (think repo's/swaps and derivative transactions), interest paid on reserves etc. This is what caused the FRB to institute the latest repo program. Someone cough JP Morgan did not like the rates they were offered so they pulled cash on deposit (it's not really cash as we know it…it's just digital 0's and1's- but you get the idea) from the FRB and this dropped the overnight liquidity for the system and spiked interbank lending rates. A 'successful' auction for $24 billion of 10-year notes in the afternoon helped to curb the weakness in Treasurys. OF course!!! Drive up muh yields for the Primary Dealers who HAVE to buy this shit. They can park it at the FED through the repo processs in a day or two either way. If/when the FRBNY starts up QE it will further pressure these already low rates…in short they are proper fucked. I mean they announced yet another increase in the REPO facility today as well-see cap#5

 

This is the second time this week after ramping up their facility from $100 billion to $150 billion on Monday. Simply put there is too much paper chasing yields and it is being placed at the FRBNY. BOOOM!

 

https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements/repurchase-agreement-operational-details#operation-schedule-parameters

 

Make no mistake…THIS is how the FED goes down…It is forced to buy these smoking piles of shit to keep the system going. What better way to nuke them by 'allowing' them to load up it's balance sheet with all the shitty debt the system has produced?… so that it is all in one place and when the time comes….it's GONE.

It will take a period of time to do this. Ask yourself why POTUS has not specifically railed on the FED about the REPO process(s). He gets after them all the time but leaves this alone…..it is the fuse that will destroy them.

 

Gold-Trading spikes at over $100m

The thing you must realize here is that the entire trade is a paper-backed market-it is done through the COMEX with contracts to deliver. Each contract "controls" a set number of ounces. There is very little, if any, physical metal being traded in this amount ($100m). The issue for the holders of these contracts is delivery. You can stand for delivery towards the end of the contract length (or at any time)-the COMEX does not want this. In the past they have bribbed the holders who stood for delviery with cash payments. This is against their own rules. The holder's of ETF's priducts are also in this boat.

 

Putin nuked the entire oil business model, this has been needed for a long time-VP is a BEAST! They Russians can withstand a drop in oil prices much better than most because the outside debt they hold is much lower and it's own internal reserves are higher than most countries. Russia's finance ministry has also come out and said it has accumulated enough liquidity in the form of $150 billion in assets to compensate for lower revenues from oil even if prices remained at the $25-$30 a barrel mark for the next six to ten years. De-coupling from the pertro-dollar was not supposed to be easy. It will be a bumpy ride…prepare if you have not already.

 

https://finance.yahoo.com/quote/%5EDJI?p=^DJI

https://www.marketwatch.com/investing/bond/tmubmusd10y

https://apps.newyorkfed.org/markets/autorates/temp

https://www.kitco.com/charts/livegold.html

https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart