Trump Invokes Military and Equities Just Don't Care
Futures Settlements and Comments
The riots around America set a downward tone for the futures equity open on Sunday night, but as we have stated, what happens on Main Street does not matter to QE levered Trillion dollar market masters. Magnelibra Econemotion’s has said time and time again that Quantitative Easing is all the input that is needed in raising equity nominal prices. It allows for corporations to increase debt loads, play interest rate SWAP games and to bypass organic profitability. If it hasn’t been made abundantly clear by now that this monetary construct is immune from typical fundamental economics, well, then you will never understand it.
What is interesting is this last move up above 3000 in the SP500 seems so forced, seems so desperate that even in the midst of all the anarchy and chaos, the controllers, those few that have access to the QE spigot, have balance sheet leverage capabilities, access to the FED Repo market are all pulling their weight to suck all the FOMO Robinhooder’s out there with fresh Cares Act capital to deploy. Here is the SP Futures chart:
The .786 Fib and the .618 Fib seem to be our breakout points targets for now, above 2928 still puts 3133 on the radar but there is a very real risk of testing back down to that 2928 level.
What is interesting to see today was an uptick again in total O/N Repos:
Are we seeing funding needs again and if so by whom?
We haven’t talked much about Bitcoin lately but the all important $10k level was breached again today and for those that have read our stuff for a few years, you know how we love the Bitcoin Technology and the decentralized immutable attributes it has to offer. We feel so many are uninformed when it comes to this valuable asset that their blindness wields an enduring limitation as to their willingness to grasp something that may end up being one of the most important inventions of our time. We can’t say we haven’t done our part in educating our investors and readers as you will see for Bitcoin we use the .768 as our Fib instead of .786 but as you know technical’s are an art form as much as a science. We are quite sure you will notice the importance of this area between $10k and $10.5k:
If you want to learn more feel free to reach out to us, we will answer anything that is within our knowledge set in regards to the technology, how to invest in it, the risks associated with it and any other questions that we may answer to improve your general understanding of Bitcoin and block-chain technology.
On the Covid front, here we show the Illinois total data and the great strides we are making to overcome this virus as the infection rate continues to plunge falling to 13.2% down from its 21.4% peak:
As far as the market settlements for today, there wasn’t much to note, equities did rebound from overnight riot, anarchy session lows as the SP500 settled in at 3054.00 +12.00, The US Yield curve continues to steepen out as yields on the US Govt 30Y bond rose 5.2 basis points to 1.455%. The US Dollar continued its slide as well falling down to 97.82 down .52. Silver continues to regain ground vs Gold as Silver hit $18.827 +0.328 on the day while Gold lost $1.40 trading $1750.30:
Finally Trump made a bold announcement today announcing military action if the states cannot get the riots under control:
We hope and pray that this situation is brought under control and that our country can get back to opening, get back to working, get back to civility and in the end we hope we find a way to resolve these conflicts that have plagued our country for far too long. We will leave you with today’s great cartoon from B.Rich at Hedgeye:
-Magnelibra Econemotions
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