Tick Tock. No not the app. That’s the sound of the clock ticking. Non-subscribers, click here for access.
The story is told in the Fed’s weekly data on the US banking system, released Friday night with a 9 day lag. Yeah, the rally may still have life, but as with all life, it’s finite. So enjoy it while you can. Because tick, tock. Non-subscribers, click here for access.
From Whence Cometh the Rally Money
I have pointed out in recent weeks that when the Treasury would start issuing mass quantities of T-bills that they could be used as collateral for leveraging other purchases. And that maybe, just maybe, dealers and hedgies might use that leverage to buy stocks. Lo and behold, as I reviewed my banking system charts, the evidence of just that process appeared. Non-subscribers, click here for access.
I present forthwith for your dining and listening pleasure, the chart of bank repo (Repurchase Agreement) loans. These are typically overnight loans that banks make to dealers and hedge funds in exchange for Treasury collateral. Non-subscribers, click here for access.
KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality!