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Balance Sheet Breaks 4 Trillion
The Market Bull 2019

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The Market Bull – November 8, 2019

The major averages closed with small gains on little real news. The Fed’s Repo Market Operations continue as the Balance Sheet breaks 4 trillion again. Since Monday the Standard and Poors 500 Index is up 14 points or .45% while the NASDAQ has gained 29 points or .34%.

Wholesale Inventories fell .4% in September on a large drop in nondurable goods inventories. The inventory to sales ratio was unchanged for a 5th month at 1.36. This report will subtract from 3rd quarter GDP or Gross Domestic Product.

The Fed’s repo operations have added 184 billion to the Fed’s Balance sheet in September and another 94 billion in October. Pushing the total to 4.04 trillion. The 278 billion added in the last few months is the fastest rate of increase since the depths of the last crisis in late 2008 and early 2009.

While the Fed is readily accepting Treasury Notes and Bills as collateral for Repo Market Operations it continues to allow Mortgage Backed Securities or MBS to roll off as it has done for nearly 2-years. Thanks to WolfStreet.com for the charts.

Standard and Poors 500 Index closed at: 3,093.08 up 7.90
NASDAQ finished the day: 8,475.31 up 40.80
Gold ended trading at: $1,459.80 down $6.60


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