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To: stkboy1 who wrote (138417)11/10/2006 3:04:21 PM
From: bcrafty  Respond to of 209892
 
Thanks stkboy. That chart is similar to the ones the author has posted in the past. Lee had a less complex chart (inside the link in your prior post) which I like better,

marketswing.com

Both the chart above and your most recent chart show pretty much the same thing: in a macro view, both the equity markets and repos are both continuing their ascent, but in a more micro view there's not necessarily a correlation between purchase agreements and equity market activity. (e.g. late 05 - repos accelerate, SPX consolidates; May 06 - repos continue to increase, but SPX began decline earlier, etc.)

And I hope you have a good weekend, too (one not absorbed by thoughts of fed purchase operations) <G>.



To: stkboy1 who wrote (138417)11/11/2006 12:04:14 AM
From: Moominoid  Respond to of 209892
 
The repos and Dow both go up in the long-run but in the short-run they are often or mostly moving in opposite directions. I bet the correlation between monthly % changes is low and the case for causality isn't there.