Early Gains Lost
Risk off again in morning trade
The markets reversed earlier gains in equity land after Univ. of Mich. sentiment came in stronger and future inflation uncertainty making new highs:
With that the market reversed course and continues to get hit, but there was some notable highlights on the way down, in particular the SP500 saw a chunky 4000 lot resting iceberg at 3625 shown here in the Blue base bars. That’s a total SP500 notional value of $725 million:
Also of note was the Nasdaq future hit the 0.618 retrace which should stem some sell side flow for technical traders:
Here is a quick snapshot of the markets we follow in a sea of red with silver getting monkey hammered down 4.67% and certainly not consistent with the limited physical supply at COMEX:
Ok we expect geopolitical uncertainty to take center stage alongside leveraged players continuing to be purged. However it is notable that the FED H4 report showed a meager $3.5B reduction last week and remember we are still up some $289.6B from last year! Also of note is the $3.0B and $3.6B in Central Bank Liquidity Swaps and “Other Federal Reserve Assets”:
So we know what the FED is trying to do, but we feel their rate hikes are not for inflation per say, but rather to purge leverage and to give the banks more free money from their interest rate spreads. I mean how tough is it to get IOER and RRP with these FED FUNDS rates and giving your customers, this will make you laugh a whopping 0.01% for your savings:
Hey they do throw you a bone though:
Anyway we aren’t picking on Chase, every institution is the same, the bigger question then becomes, why bother parking any of your money there???
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