As long as the FOMC is pumping fresh cash into the markets it will continue to set new highs. You just can't fight an outfit with unlimited cash.
The Repo Market liquidity issues are entirely of the Fed’s own making. They’re playing catch-up. It’s not QE, but is the result of QE. During QE, the Fed bought up Treasuries - which created a vacuum for Banks looking for sovereign debt to use for operational liquidity and for overnight borrowing. The Fed has also been rolling coupons at an enormous rate given these historically low interest rates - and that also creates a liquidity vacuum.
Yep just to keep wallstreet happy and create more 401k millionaires. It's all a game. But the fed continues to spew that they aren't there to inflate stocks yet the whole purpose today is to keep stocks inflated by the fed.
Sounds like the easiest trade in the world - why so anxious about reality conflicting with your own internal narrative?