10/29/2018 Live Update

[K447]

... 33.2 billion out of the system ...

For reference, how big is the system that would be losing the 33B ?

[Al_Dente]

HAPPY HOUR

[Trades with cats]

That is the Fed's SOMA reduction. I don't know the breakdown but it is all US Treasuries or mortgage backed agencies. It is that grand plan Yellen put together of not re-investing all the payoffs each month and every three months increasing that level. Well this is yet another step up.

I would pull a chart but I don't have Adobe. This also gives composition. https://www.newyorkfed.org/medialibrary ... Update.pdf

[Trades with cats]

Add on comment. Because the primary dealers (New York Banks) have to guarantee that all US Treasury offerings are purchased, the Fed not buying 33 billion means others must step up. So on paper Goldman and the others could be put in a short term liquidity squeeze until they can unload the fresh paper, thus fewer funds available for proprietary trading, in theory. Especially with China turning their backs on US Treasuries.

[QED]

CNN's Fear & Greed Index is not at zero ... yet ...

[Al_Dente]

5min SPX
Maybe it fails here
But it’s working on higher lows
And a NON-CONFIRMED inverse-H&S (neckline is cyan dashed line)

Same profile on SMALLS, 5min
trying to fail, but still higher lows
And a NON-CONFIRMED inverse-H&S (neckline is cyan dashed line)

BOTH BROKE DOWN; big reversal

[Trades with cats]

Bulls found a little courage at Friday's low. Going to need some buy programs to climb back to green.

[QED]

JPM is showing leadership strength today!

[Cobra]

members only update at 3:50 pm
http://www.cobrasmarketview.com/2018/10 ... ay-update/

[Cobra]

well, guess that's it for today. Tuesday tomorrow has been mixed. thank you guys, I'll see you in another thread soon.

before the close, please take a little time to vote for me, thanks. https://stockcharts.com/public/1684859/tenpp