TreasFed Buying Toyota and Apple Bonds
SP rally for 3rd consecutive Monday off Sunday night gap down
Equities rallying as US TreasFed now scooping up bonds, looking to add up to $750 Billion to its balance sheet as details continue to emerge about the Feds makeup of its Corporate Bond Market Index.
Toyota, Volkswagen, Mercedes Benz appearing on the list right with U.S. Automakers, so who’s kidding who here, this isn’t just a U.S. bailout we hope this is obvious. Here is a link to read Barrons on FED Corp Buying Automakers
Not to be left out, even Apple is on the FEDs corp. bond list, you would think a company with $192.8B in CASH wouldn’t even need to issue bonds, but none the less when you see things like this, and then you wonder why Main Street America is angry, well, that should be pretty obvious. As this just happened in St.Louis yesterday, not that this couple by any means represents main street America, but you get the point and the level of anger:
Anyway this is just a quick note to post what will now be the 3rd consecutive Sunday night sell off to only be bought back on Monday as highlighted by the pink arrows:
Technically 3043 above the channel then the all important 3060/64 level! This is why we recommend directional hedges such as calls, because no matter what, the general equity bias is always “HIGHER”
-Econemotions
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