Something isn't right in the markets - a storm is brewing

So there's a series of events that's happened in the last few weeks in the markets that are correlating with one another to form a bigger picture.


Federal Reserve Buying Treasuries On The Open Market

(Reuters) - The Federal Reserve said on Friday that it will start buying about $60 billion per month in Treasury bills to ensure “ample reserves” in the banking system, but emphasized the new program does not mark a change in monetary policy.

The chart above is an ETF reflecting the dollar (DXY). You can see the immediate impact of the Fed's treasurey announcement on the dollar. This is otherwise known as QE (quantitative easing). In this picture the DXY (dollar) is breaking a long term bullish trendline and getting some small support from the 50 day moving average. If it breaks the 50 day next week look for a longer term bearish dollar trend to form in the markets and a fall to the 200 day.

Investopedia

To execute quantitative easing, central banks increase the supply of money by buying government bonds and other securities. Increasing the supply of money is similar to increasing supply of any other asset—it lowers the cost of money. A lower cost of money means interest rates are lower and banks can lend with easier terms. This strategy is used when interest rates approach zero, at which point central banks have fewer tools to influence economic growth.

So the Fed is having to push interest rates down and increase liquidity in the market due to drying up money velocity in the markets all while the Fed is bailing out the overnight repo market.

St Lious Fed - Money Velocity



Velocity of money is when...

The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. It also refers to how much a unit of currency is used in a given period of time. Simply put, it's the rate at which consumers and businesses in an economy collectively spend money. The velocity of money is usually measured as a ratio of gross domestic product (GDP) to a country's M1 or M2 money supply.

It is used to help economists and investors gauge the health and vitality of an economy. High money velocity is usually associated with a healthy, expanding economy. Low money velocity is usually associated with recessions and contractions.

This is happening while the velocity of money is actually tanking.

AND to top it off... Trump and China rush into a psuedo deal (that hasn't been signed or agreed upon yet).

Pretend trade deal

But both sides acknowledge a full resolution to the long-running trade dispute between the world's largest superpowers remains a long ways off.

Something is brewing in the economy right now and it's not looking good. Usually when the Fed and government begin interjecting in the "free market" (haha jokes on you) it's already to late.

Keep your eye on this because this is starting to get serious.

a reply to: toysforadults

Good. Its about time a lil chaos comes in to test our beliefs.

Somebody's trying hard to create a Big Fat Recession !! 😧

a reply to: xuenchen

Who might that be and what proof do you have?

originally posted by: toysforadults
a reply to: xuenchen

Who might that be and what proof do you have?

George Soros. That's a matter of opinion and no proof. Sorry.

a reply to: LogicalGraphitti

George Soros?

Yikes, guess the guy is pulling strings at the Federel Reserve now

The yeilds just rolled over....two days ago, the dix lags three days. Gold goin down oil and equities up.......all coza yeilds

a reply to: GBP/JPY

life savings SPXL puts 1 week out

It is just another scheme, albeit better thought out, to get a payday on our dime.
Enough get nervous and get out. Market goes down and they scoop up the lower prices.
What else is really new?


Eye on the ball... watch from some big sells/moves near term.

a reply to: toysforadults

WW3 is about to erupt, not a nuclear holocaust - at least not at first but the event's in Syria escalating the way they have are set to force Russia and Turkey to come to blow's one way or another and when they do NATO love or hate the Turk's may well be drawn into the conflict and Iran will likely seize it's chance.

Too many ingredient's make for a bad mix and this one is a hell of a doozy set to boil over any time soon.

Expect it to get hot.

The stock markets are rocking from this AND the unrest in Hong Kong is also having a slight impact as well - business does not care who is in charge so long as the profit's keep rolling but they won't, except for the arm's manufacturers of course.

If the world goes into recession, get your grab bags/bug out bags ready, the elites have been engineering this coming war for a number of years, in fact, they went from capitalists to communists in under two years, it’s quite obvious to me they fear a people’s rebellion because they’re UNWILLING to put the billions and trillions they HOARD back into the economy's they RAPED... money goes to money people, that simple, and so began to import cheap labour for two reason, to either A) prop up the economy’s as they’ve raped them so much while sowing divisions and distractions... B) to manipulate to fight those who might rise up against them when the recession hits again and refuses to bail them out

Because WTF happens then ? they can’t be bailed out again, they would need to stump up the money themselves and that’s not going to happen in a million years when the weird so much power and influence over every aspect of your peasant life, IS IT? Our grandchildren are already indebted, interest rates can’t go any lower... the system IS COMPLETELY BROKEN WITH GREED, and the public will want their heads on a plate should they ever wake the f**k up

It’s their greed which has led us here, not Countries in which they extorted to become rich, this is why the commies and socialists have been so easily manipulated, but they’re too stupid to see those who bankroll them are the crony capitalists who broke the system

It’s a stitch up, and eerily similar to the start of WWII in which the elites bankrolled both the axis and allies after economic turmoil, great depressions etc etc to take the heat of them

I can see the socialists and communists points, but they’ve got the wrong guy, Trump spotted this fact and how they sold out and destroyed nations for self enrichment-and profit margins, Trump only tried to stop it and save the USA from the bin of history now these people have moved on to creating a a multicultural NWO because PEOPLE are the commodity and they absolutely envy china’s model, which is based on extortion of 1.6 billion people, why do they envy it? Because they only extort 230 million Americans and 500 million Europeans,
They want MORE and they do t give a
Monkeys how they get it, it’s about POWER and CONTROL all the same as the Chinese commies and that’s why they’ve switched from crony capitalism to communist in such a short space of time

Think how the west India company and east India company separated from the crown as it enriched itself and become more powerful than the crown, that’s whats happened and the sooner people wake up and realise how you’re ALL being manipulated the better, but I very very much doubt it

It is about the time for a major correction. I think the Republicans want it delayed till after the election and the Democrats want it to happen before the election so their candidate has a better chance.

Simple politics. Obama inherited the last crash but the Democrats did not have the correct way to solve the problem.

a reply to: rickymouse

tht ascending triangle on the SPY/DOW/QQQ/IWM is going to turn into a massive bull or bear market that you can bet on for sure

wait for confirmation

a reply to: LABTECH767

I'm just waiting for someone to piss off the Germans

a reply to: toysforadults

The world does not end with a whim, but with a banker!

originally posted by: toysforadults
a reply to: LABTECH767

I'm just waiting for someone to piss off the Germans

The Germans are pissing themselves off, its identical to 1933 in Germany, you have the communists posing as democrats and the patriots being labelled fascists for wanting to retain their culture and identity as the globalists tell the communists to keep pumping in the cheap labour to stop the economies flatlining

Very dangerous situation which will absolutely cause a civil war, the same is true right across the western world, it’s worst than people realise and won’t end until an inevitable clash or a miracle, that miracle being a huge injection of money from the world bank IMF and the likes who owns the EU project

The EU has as much as said they’re going for a NEW EMPIRE and I have no doubt the plan is to bring in the entire western world from Australia to the USA

It’s about consolidation of power as they fear the rise of red China, in which they themselves created while enriching themselves, its a game of thrones and they’ve been playing for a very long time

We have been due for a market correction, I am no economist but we have recessions roughly every 5-10 years, the last recession was 2008 so we're definitely overdue.

With Joe Biden out, Elizabeth Warren has the markets very VERY paranoid.

originally posted by: carewemust
With Joe Biden out, Elizabeth Warren has the markets very VERY paranoid.

Oh please..

originally posted by: conspiracy nut
We have been due for a market correction, I am no economist but we have recessions roughly every 5-10 years, the last recession was 2008 so we're definitely overdue.

It used to be every 11.1 years when i was a kid just like sun cycles