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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: Jacob Snyder who wrote (52269)2/18/2022 10:35:32 AM
From: Jacob Snyder2 Recommendations

Recommended By
ajtj99
towerdog

  Respond to of 96433
 
Closed my QQQ, R2K shorts. We are in the middle of the late-January range. I expect a bounce (which I will short) once war fears subside.



To: Jacob Snyder who wrote (52269)2/19/2022 4:18:50 PM
From: Jacob Snyder3 Recommendations

Recommended By
ajtj99
Lee Lichterman III
towerdog

  Read Replies (1) | Respond to of 96433
 
QT likely to begin in 2H22:

From latest Fed minutes:

"A number of participants" said that conditions would likely warrant starting to shrink the balance sheet "sometime later this year.”

"Participants observed that, in light of the current high level of the Federal Reserve's securities holdings, a significant reduction in the size of the balance sheet would likely be appropriate," the minutes said.

Inflation figured prominently in the minutes, with the word appearing 73 times…

Federal Reserve official agreed that current economic and financial conditions "would likely warrant a faster pace of balance sheet runoff than during the period of balance sheet reduction from 2017 to 2019," … seekingalpha.com

My comment: 3-5 rate hikes in 2022 are in stocks. 6+ rate hikes are not. QT is not. The Fed will do QT and rate hikes till something breaks. Something big.