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Reverserepurchase

Reverse Repurchase FacilityReverse Repurchases are a clear indication of excess liquidity in the Banking / Financial System. Money Center Banks have monies in excess after meeting obligations to the following: Liabilities Investments Lending An increase in the Reverse Repurchase activity will decrease the money supply. Reverse Repurchases mean that commercial banks are provided more incentives to park their funds with the Central Bank - decreasing the supply of money in the market. RRA's soak up excess Liquidity. As we can see they have broken Trends should be expected as CASH is within Overnight Reverse Repo Facilities @ $500Billion assist in providing support for overnight interest rates by acting as an alternative investment for a broad base of money market investors when rates fall below the interest on reserve balances. This is facility is not for public consumption, but Primary Broker / Dealers and Money Center Banks and Financial Institutions.
FRED:RRPONTSYD
by HK_L61
6
Reverse Repurchase Agreements expand 60% in 1 MonthDuress is everywhere. There is no escape, while the demand for Collateral increases the Rate of Demanded Collateral continues to Rise in Yield. Interesting Times indeed. For those trading "Conventional Paradigms" ... Please check your Six. The Federal Reserve is Supplying said Collateral from its ever-expanding Balance Sheet. At a large profit no less. We simply follow the leaders and OBEY. No real need to complicate matters or Howl at the Moon, as it frankly changes nothing. Trade it until the Lights go out.
FRED:RRPONTSYD
by HK_L61
Reverse Repos - ATH - KarmaGeddeon Bid Expands to $1.35 TrillionNon-Financial rated Debt, Corporate Debt will begin to roll over as GDP Forecasts, although no longer provided... does not matter, the Global Economy is once again on the Steep Decline. Supply Chain Issues compound monthly, with no end in sight. The answer is, Buy STONKS, they are the New, New, New, and Improved Liquidity Economy. Stocks are the Economy for most Americans. GDP is resolved with Gains in Zombie Companies buying Trillions of their own shares. 1.6 Million Options were swapped for Tesla Friday, 52% Calls. The Gamma Squeeze for protected entities is in trade. Yeah, Naw, we'll pass for now, wait for the Pullback into the Final Stage of this Historic Bull Market. Commodities are pitching a large Bis as the Safety Trade is back in force. There will be a final Blow Off Higher into 2022 as Debt Markets join the idiocy until it all simply implodes. 2022 is going to be a very difficult year for most. Perpetual Bonds are assured, the reset there will require a degree of patience while the "Distribution Phase" requires time. Insider selling remains robust, Retails are going All-in on the YOLO. Meme's will begin to roll over and collapse into the next Sell, which is ahead. We will see how long they can continue this Distribution . Margin Debt remains elevated at Highs. INever forget Crammer issuing Buys in March of the DotCom peak for the most bloated overvalued JUNK Stocks which promptly collapsed from $600 to $0. 2022... one for the Books after 5/5 completes.
FRED:RRPONTSYD
by HK_L61
2
Reverse Repos - Cross All Time Highs @ 1.183 TrillionNot a Fan of Drama(s). Consider this antithetical to Drama. Safety, a great deal of it is being bought in Size. Both, The Federal Reserve and the Unites States Treasury are removing it at a rapid pace - Liquidity. This would appear counter-intuitive as the Equities Complex continues to make ATH after ATH. _____________________________________________________________ From November 2019 to February 2020, the exact same pattern repeated. Liquidity was removed, Banks tightened lending. The rest is history. It does indeed repeat. Then as now, Margin Debt had exceeded prior Highs, everyone was in and heavily leveraged LONG. The Put/Call Ratio had reached an extreme LOW. Complacency was abundant. Market conditions then, as now created immense vulnerabilities. The potential for a FLASH CRASH had never reached this extreme then. As for now, the potential has never been higher. Sentiment plays an important role as well... Confidence in the everything. Not simply Stock, but our arrangements in every manner. These are horrific at best, by any metric. ______________________________________________________________________ Charts are not the end all be all. February 22, 2020 should have taught everyone this simple edict. Accidents happen and although they may "Appear" in our Charts, there is something FAR MORE IMPORTANT and that is the underlying Fundamentals. It is more than fair to suggest the Federal Reserve can and will provide unlimited support to the Equity Complex, Bonds, Real Estate, Money Markets as well as support Fiscal Malfeasance by our Government. To a point... Global Equities look terrible, there is an accident ahead, a large and insidious event that will arrive unannounced and undo what has been done at surreal expense. It has been a long time - An extreme divergence between US Equities and Global Markets. A large and important drop in Asia's Equities Markets implies a contagion is developing and with it a hyper selloff in global equities. Divergences within our Equities Complex have NEVER been this extreme. It is referred to as Capitulation, not by you or I - but by Global Central Banks under the direction of the BIS. ________________________________________________________________________ It is near. Extreme Caution is warranted in everything. There is no date, there is no time to project, A day, a week and even a month. That said, when it arrives, gains will be lost and then some. Everyone appears to be "Anticipating" this correction. They Hedge and become fuel for the next squeeze of protection. This is all that is driving this market now, nothing more other than the need for a higher Fill. It is be design and plan. ____________________________________________________________________ Cash is a position, it is an exceptional one at times when one is confused or inexperienced. We are preparing for it now. xoxo - Hunter Killer
FRED:RRPONTSYD
by HK_L61
10