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Repo’s Increase To 120 Billion Dollars
The Market Bull 2019

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The Market Bull – October 23, 2019

The major averages closed with small gains on mixed earnings. The Fed’s Repo Market operations seem to have no end and are increasing in volume. After the latest Fed announcement that it would increase Repo’s to 120 billion Dollars per day through November 14th. The implication here is far from positive as flooding the markets with this kind of liquidity suggests that something has gone horribly wrong or is about to.

The Mortgage Bankers Association reports that mortgage activity plunged 11.9% last week as refi’s cratered 17.1% while purchase apps slipped 3.6%. The 30-year contract rate for a jumbo loan increased to 3.96%, still very low by historical standards.

The Philadelphia Fed State Coincident Index increased in 39 states in September, fell in 8 states and was unchanged in 3. While this series still shows decent economic growth, the tide seems to be turning. Reflecting a number of other economic series of late that have softened as well. Certainly nothing to be alarmed about just yet, it nonetheless remains a trend worth watching.

Standard and Poors 500 Index closed at: 3,004.52 up 8.53
NASDAQ finished the day: 8,119.79 up 15.50
Gold ended trading at: $1,494.60 up $7.10

This is Caleb Lawrence Registered Investment Adviser I can be reached directly 831-334-5318 or stop by my office 5321 Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202, Scotts Valley, Ca, 95066.

Additional writings, and other entries are also available on my Blog at www.clinvestments.com

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.


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