By an obscure codicil of federal statute, I cannot end the day with a post griping about my XLU trade. Thus, even though God knows I’ve created plenty of new content for you people, I’ll bang out one last one. Naturally, it’s about Thursday’s data release (which, let’s face it, may be the last one for a while if the government shutters!)
Janet Yellen’s checkbook is nice and fat…….
While the good people at the Federal Reserve continue to burn off their securities holdings. Except for the March bailout, the Fed has been doing a yeoman’s job drowning the market with hundreds of billions of dollars of assets whose value has been shrinking for years now.
The Reverse Repo is *SO* 2022.
Yellen’s BTFP program is holding steady at about $108 billion of Janet Bux.
Thus, the liquidity-based S&P 500 value is 3718, down from last week.
And the spread is wider than Oprah’s waistline.
To close out this exciting week, we have the PCE report an hour before the opening bell. See you then.
Thursday Follies
