WHAT DOES A TRIP-WIRE LOOK LIKE ?
It’s as clear as a bright sunny dawn, that multiple financial failures are what is draining all the cash the FED is putting out as repo’s. That’s probably not the sun you see coming over the horizon but the closest nuclear meltdown of a bank or derivatives bomb. Maybe its Deutsche Bank’s meltdown from the money it advanced Bayer to buy Monsanto.
So unless you are a Friend of the FED, how do you tell the players. They don’t sell player programs to the public nor do they post the game times or timeouts.
Back in 2013, someone, probably with the $ and blessing of the ESF (Emergency Stabilization Fund)(sometimes employing JPM as agent) hammered Gold and related products down in the TAX Day 2013 Massacre, so far in fact that there is still a gap unfilled from six+ years ago. The gap shows up a lot better on smaller interval and Gold Stock charts.
Many, many stocks show gaps, as yet unfilled waiting to be an island bottom, to include GLD, SLV and RGLD.
So now we play this waiting game, as Gold bottoms out again, and the Fed floods the globe with “play” liquidity, supporting positions that have already popped but cannot be revealed to the public lest they “lose confidence”.
Due to the untold trillions the Fed has already pumped in during the last two months the bank charts looks as if there are in no short term danger. Long term, what pops is anyone’s guess, so much has been pumped up so far.
Lets focus on what we can use to tip us off when things start breaking down. Using some Indexes of Banks stocks not in the public eye.
First is a Community Bank Index on Nasdaq, QABA, then FTXO, theNAZ Bank Index, comparable to BKX, and also $BKX, then XLF, the Financials.
For right now, the Financials, the broadest net out there, cover what we need to see.
So for the moment the world is safe. For now.
While the linked article is long and complex, the bottom line is, that it is so ironic that JPM caused the kerfuffle that spiked over night rates for funds to almost 10%.https://www.zerohedge.com/health/its-incredible-scale-what-jpmorgan-doing-mind-boggling
Basically JPM paid down its loans, with 130 Billion Dollars of reserves, and poured the rest of the funds into bonds, causing the deficit of lend-able reserves that then caused the spike in over night money, and gave the FED a great excuse to “NOT QE” half a trillion a week into the over night funds market, on a continuing basis. Hmmmm ? Was it planned or coordinated. IMO, probably not. Did JPM know the FED would backstop or bail them out? Based on past experiences here, I’d say they bet on that big time!!
Like I say, “Its your money, you decide!!” My call here is the FED will keep on bailing anyone and everyone, foreign or domestic, until they can’t. Where does that leave you? I am always on the watch for incorruptible mediums, not subject to watering down, meddling, or inflating. There are a number of these mediums available, but generally not pushed by the mainstream paradigm. A historical quote says “Seek and ye shall find.”, I think it is right. DG