Trader: How I Learned Not To Fight The Fed And How To Trade ‘QT’
By Kevin Muir of “The Macro Tourist” fame; reposted here with permission
I know I have told this story before, but it bears repeating. Way back in 2011 I was watching the S&P like a hawk. Trading each squiggle, I tried to understand what was driving the markets at every point. I focused on technical levels, monitored the news and spent way too long staring at the screens.
But on some days, the stock market would get mysteriously strong. It would usually occur mid-morning. Often stock
No bonds maturing for a month prior or subsequent to June 30th. They will need to not reinvest any of the $30B that matures on that day. Thank you for the timely guidance.
Market did what it should then by brute force if the flow effect was not anticipated, especially if you agree market liquidity is lacking almost everywhere.