Fed Sold The Most Since 2012

We've been tracking changes in Federal Reserves for some time. It helped us predict a nice up move ahead of the last FOMC rate decision. The Fed's recent moves though show a big drop in reserves which is a market negative. It also may imply a continued hint to Fed tightening of monetary policy. We'd guess that the market upside can be capped out. If correct, that would call for taking profits if we were to get an up move.

Here's the recent changes in Federal Reserve balances.

	Reserves	Week To Week Chg	Wk to Wk	YTD Chg
2016-08-24	4227711875610.08	$5,665,577,857	0.13%	0.06%
2016-08-31	4212673983393.06	-$15,037,892,217	-0.36%	-0.30%
2016-09-07	4212675983165.18	$1,999,772	0.00%	-0.30%
2016-09-14	4232164926101.79	$19,488,942,937	0.46%	0.16%
2016-09-21	4224034597317.01	-$8,130,328,785	-0.19%	-0.03%
2016-09-28	4203567172677.74	-$20,467,424,639	-0.48%	-0.51%

Source: New York Federal Reserve

Last week's move was the largest week-to-week decline since November 2012.

Here's the chart of where Fed

View Original Article

Comments

Plain text