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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bid Buster who wrote (70673)	4/27/2005 11:27:34 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

A coupon pass is printing, Fed Repos is not. I find amasing correlation between 10:30am announcement of coupon passes, and 200 point rallies in DOW Jones average, which start immediately afterwards.

To: Bid Buster who wrote (70673)	4/29/2005 7:36:34 PM
From: Real Man	Respond to of 94695

This is interesting. Fed Repos are usually overnight loans. I don't know if a detailed study of this exists - I have not done it. But here is a chart of SP500 this past month against the LONG term lending and coupon passes. I see very good correlation. I noticed the same huge pick up in LT lending when bonds and stocks were in trouble during the past 3 years (periodic Fannie scandals). stockcharts.com[m,a]daclyyay[da][pb50!b200][vc60][iUb14!La12,26,9]&pref=G bullandbearwise.com The short term repo pool is typically beween 20 and 40 Bln. bullandbearwise.com So, it oscillates, but what's given to banks gets taken back rather quickly, so the net result is zero. It should not be correlated. For securities lending and especially coupon passes this is not the case - those (especially coupon passes) directly inflate the money supply