NY FED on Reserves and Cash Balances
Mustread for Econemotions subscribers
As a side note, we would like to say that it is our duty to educate our subscribers in regards to the most important things that we think you should know. When it comes to our fiat/debt monetary system, it’s inherent design remains esoteric to many because many lack the will to read (boring, lack of interest) the materials necessary to understand things. However QE or Quantitative Easing is now standard practice and its continuing the monetarists debt forever ways and growing exponentially now. With that in mind we feel its imperative that we understand how the monetary system drives economic cycles and more importantly overall asset prices.
So when we see articles like this put out today by Lorie Logan. Here is here title actually:
Executive vice president in the Markets Group of the Federal Reserve Bank of New York, manager of the System Open Market Account (SOMA) for the Federal Open Market Committee (FOMC), and head of Market Operations, Monitoring, and Analysis (MOMA) (That’s some title!)
The link to the speech entitled, “A Return to Operating with Abundant Reserves” by
Lorie K. Logan, Executive Vice President in regards to her remarks before the Money Marketeers of New York University, can be found HERE
Alright, we will be back later with those equity charts we promised as China’s rocket landing to the moon has dragged all the markets higher once again, well we aren’t sure that’s the reason, but its fun to think about. In fact Magnelibra Econemotions would also like to ask the Chinese Astrophysicists just exactly how they managed the Van Allen belts, but that’s a topic for another day.
Here is a quick market update for you. US Fixed Income is getting battered as yields are rising across the board. (Tradingview data)
US FIXED INCOME
30Y +9.6bp…10Y +9.2bp…5Y +5.5bp
As far as EQUITIES well, let’s just say the call gamma excuse is getting old!
Alright, we will post one chart, but don’t share until you are positioned! This set up seems ripe to roll tack late to the party longs here as the SP500 has finally taken out the highs at 3668 (took long enough!), but the Stoch RSIs are diverging (lower than the previous high).
We would take this as a cautionary image. We feel that this move warrants close inspection and that our readers have been put on alert. For our Founding Subscribers we will most likely recommend some repositioning in the equity sector to hedge long equity based exposure and perhaps some put structures as well.
We will post more charts later tonight alongside our settles for the day and maybe we will toss in the Magnelibra GFBP Positions Tracker update. We really feel that our readers would be best served if they followed the tracker within their own modelling and trading. (subscription required) Anyway here is the SP500 chart:
As always, please share our work and subscribe if you haven’t already, your continued support allows us to bring you relevant and important market analysis and content. We are underpriced with the free tier, way underpriced with a 2 latte a month style and about just right for the Founders which has access to our Global Futures Benchmark Program positions tracker daily. We hope you enjoy our work and we hope you continue to support us.
-Magnelibra Econemotions
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