First, They Think You're Crazy... Authored by Sven Henrich via NorthmanTrader.com, 80's Party First they think you’re crazy and then they’ll join you. On January 14th I outlined a rather obvious appearing correlation between the Fed’s repo operations and the market’s behavior: Every day, no matter what happens or what data is thrown at this market the same pattern repeats: Markets are jammed higher following the Fed’s repo operations. It is this chart I’ve been posting on twitter every day since and no change to the pattern: This has been going on for a while and has gone into overdrive since early December, the last real dip in markets: “ Since the beginning of December, the combined reserve management purchases plus repo injections has been approximately $400 bn." The impact on the market’s behavior is now obvious in the charts, nothing but 45 degree channel price levitation: And while folks like myself are being dismissed as QE conspiracy theorists the Wall Street Jou...
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