Today’s the day, folks, when absolutely nothing is announced but a lot happens. Please swing on over to SlopeTalk as we enjoy Chair Powell’s musings and abusings. His press conference starts at 2:30 EST.
FOMC Watch Party
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
FOMC and the SPY
Since the eight-times-a-year FOMC is on Wednesday, I thought I’d use the Event Markers feature in SlopeCharts to see how the SPY has behaved following these days. Since the market has, more or less, being going up nonstop, the SPY tends to, more or less, go up after every FOMC (with the notable exceptions of last September and October, which were sort of the last gasp of any bearish hope).
Liquidity Look-See
As we await the new trading week (completed with an FOMC on Wednesday), let’s look at the latest liquidity-related charts. We start with the just-closed-this-week BTFP program by that scum-sucker Janet Yellen. These “loans” are supposed to be paid back in a year’s time. Uh-huh. Anyway, at least it won’t grow anymore. That is, until the old biddy decides to start it up afresh.
PREMIUM: Never-Ending Liquidity
by Silver Singularity
Hi Slopers, time for another post and, boy, what a year so far!
Where to start? Well, NVDA I guess! What happened with that stock is the most mind-blowing thing I have ever seen so far, and I’ve been trading since 2012, even TSLA in 2021 wasn’t even close to being as impressive as this one.
The only thing I can recall that felt the same was Bitcoin in 2017 and 2021 but even if crypto is behaving like a risk-on asset it’s just not comparable to stocks IMO.
For some perspective about how strong that mania has become, at $973 on Friday NVDA was up 97% and a whopping $1.2T (almost) in market cap added YTD.
(more…)Liquidity Trio
Let’s look at the latest from the Fed. Here we see the BTFP program, which shutters its doors in just a little more than a week. What a different a year has made, huh? The banks gobbled up hundreds of billions of dollars of free money, and they only stopped when the Fed FINALLY stopped paying them above-market interest rates (that is to say, free money). That’s why we’ve flat-lined for the past few weeks. Anyway, please note that the BTFP closure doesn’t mean they all pay their money back. It merely means they can’t ask for even-more-hundreds-of-billions anymore, at least until the next government creation.
