SPX and Fed Liabilities+Capital Correlation since 2017 (UPDATED)
FRED:WRBWFRBL
Liabilities and Capital: Other Factors Draining Reserve Balances: Reserve Balances with Federal Reserve Banks: Wednesday Level
Updated this to the weekly chart timeframe as I want weekly close updates, not Wednesday updates (that's when the fed data is listed)
Comment:
if you're so itchy for the wednesday data on wednesdays. check the other one
Comment:
if anyone is curious to my excuse for the 2018 divergence: inflation was pretty low, other central banks were not tightening, and jpow is a pussssaayyy
Comment:
two straight weeks of pumping (though the divergence is still there) as more regional banks use emergency loans.
more pumping = more liquidity = fed put = we go higher
until then, GG i expect more downside, at least to close the divergence, maybe at 3900 spx, give or take some handles
more pumping = more liquidity = fed put = we go higher
until then, GG i expect more downside, at least to close the divergence, maybe at 3900 spx, give or take some handles
Comment:
I absolutely love this chart. Third straight week of pumping. The fed turns on the money printer = we go higher. Yes, it's that simple.
Still expecting a pullback into summer
Still expecting a pullback into summer
Comment:
I was wrong about MMF inflows. They dipped a little, but then they continued higher. Makes sense, banks aren't seeing deposits returning or likely going down! Why should they? Savings yields are dogshit.
Comment:
The Fed is doing defacto QE right now. Massive liquidity pump this week. If you're short watch tf out