Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Latest FED Fund trading profits.

FED FUND profit reached news high the past week and peaked today.
For the quarter 9.42% compared to a buy and hold of 7.26%
As is typical, the FED added considerable liquidity during XMAS and the markets have soared. Markets typically go up during the holidays.
We followed along, adding in over 10b in new stock purchases in the past week. December has been very good to us, we have doubled our profit.

We now hold a near record number of shares in the FUND and the repo stack is at record highs too.

It would appear the indexes will close out the year on the highs.
Now what?
Will the FED begin to cut back now after the holidays? (Jan/Feb)
Last two years running they have done so, and with the repo pile so high, maybe its time?
Further, at the start of each month, they tend to make a drastic reduction and sell out.
Typically, the repo stack falls back to average levels, where pumping activities are renewed.
Will it happen again? Could be, but maybe not.

Maybe they reduce than hold steady, and the SM falls?

We have seen no coupon passes this DECEMBER?
Well its nice to speculate, we don't anticipate, we follow along.
If the FED buys more so will we, and if they sell likewise.
Some have claimed the FED repo's make the market move, this is the only place I know of, where you can see a simulation of action, trading with the FED, in like kind moves.



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