3100 ha....way too low in this perfect market. Every bull knows it's going to 3500 and should close 2020 at 4000 after the elections are over. This is going to be a bull market that last decades and decades and decades. Tomorrow the fed will ignite another rally, this time to fresh historical highs!!!! As long as the fed props up the market there should be absolutely no worries.
Get the irony, but as insanely as your post sounds it might turn true to some degree. The issue is of course when the music stops it will be monumental like nothing anyone alive saw.
Drop it 20% when Powell doesn't give Trump what he wants tomorrow (which is a full point cut), Trump has a hissy fit and drops a new tariff bomb in China a few hours later, and we get Q4 2018 right on time. Perfect timing.
%% You could be right; i was not exactly that bearish on oil ,$35. 00, but you may know something i dont. LOL. I dont make predictions on stocks/ETFs or oil. BUT with 200 + years of Up trending stock market+earnings in US. And 150 years + of that stock uptrend without FED; you may have the uptrending direction right.,
The Fed is trying to maintain a particular fed funds rate plus or minus a little. The Funds rate is the wholesale price of money that banks pay. Banks loan without any consideration of their reserve account position. This is normal. The loans become a bank asset. To meet their reserve requirement, the banks then may borrow from other banks who have excess reserves. If there is a rush to borrow large sums, perhaps because rates are perceived as unusually low, perhaps coupled with other unusually large drains of reserves, there could be a larger than anticipated total drain. This might explain the C.B.'s need to shore up reserves with repo action or bond purchases. The unusual nature of this would be significantly increased demand for money by business at a time the C.B. is trying to hold down rates because they are concerned about a slowing economy. The latter usually corresponds with business belt tightening. Another factor is that the government is leaving large excesses of money in the economy at present, the deficit is expected to go near a trillion dollars. Where is all that excess money going if not into private savings and treasury purchases which again swells reserves that the Fed may have to drain? The emergency shoring up of reserves by the C.B should be seen as unusual but not as malpractice. What would definitely be malpractice however is the C.B. caving to pressure from a President, if not justified by Treasury requirements and economic indicators.
Another, 3rd, injection of 75 bil. Last 3 days 200 billion were injected and anyone hardly notices and market keeps going up. Wow all I can say.
Just so you know. This is not cumulative lending it is overnight lending. It may be that the first loan was for $50 billion and the next for $100 billion but the $100 is including the original $50. This is overnight leading. The Fed use to do this all the time when reserve requirement were less stringent and bank balance sheets did not look as good as they do today.