Abet Chichi2

[chichi2]

Education: Why do we post the Feds activities? (Part-I)

the Net, it can aid as background in trading.
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I'll give you a hopefully easy to understand Example:
a very big picture example

Greenspan's FOMC put lots and lots of money into the Federal Reserve System in 1999 and before time period, he was afraid of potential Year 2000 (Y2K) problems (new 100 year change in clocks and computer programs.

The lots and lots of money Added, caused the Markets to go UP. That is one effect of adding money to the System.

(Greenspan today, defends doing this, he said he was correct to do so. That is not my point to argue with him.)
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We believe the injection of too much money into the system will cause the Markets to go Up. And the inverse. The key words are too much causes direction changes or exaggerations.

We are not Experts in the Federal Reserve System, nor do we understand all of the nuiances of adding and cutting funds, but we do understand enough to know over the several years we have been watching it, the info is helpful.

For the record, Bob3 has been doing this posting of the Numbers for several years with me on my Boards. Bob3 numbers have been watched by many over the years.

It is my belief that the new graph site called Slosh Report probably picked up on the idea too.

It is helpful to see Bob3's Daily data advice, and his inventory numbers of the Fed maturing Repros etc which Bob3 posts on the WeekEnds. Bob3 includes the Slosh Report too as it gives good visualizations of some things that raw data does not easily communicate. Bob3 tends to be correct if there is a discrepancy between the data. So we get the best of both data presentations. Plus, we sometimes comment on its usefulness.

Long ago, i used to buy a service to give me trading info using Fed Reserve Data, it was very esoteric, so i always had to convert the info to English for others. It was Something worse than Greenspan Speak.

If you have questions on these ask them, we can not always answer them during the day on trading days. Also, i am a Fee Member so i can Post infinite Posts. Bob3 is a Free Member so he is careful how he posts.
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It is my plan to cover a little bit of the Fed and why we post it, every so often. Above is only to intro a few words, i will expand on definitions as we go. So if you are not interested don't read these, if you are, it is Free, except for your time.
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YOUR FIRST ASSIGNMENTS are read these two posts, they are Glossary Items. The items within are live, so you can click on them.

http://www.thestreet.com/tsc/basics/tscglossary/openmarketoperations.html

http://www.thestreet.com/tsc/basics/tscglossary/federalopenmarketcommittee.html

http://www.thestreet.com/tsc/basics/tscglossary/fedfundsrate.html

For extra credit, if you are a paid member of iHub, you can search this board on "Fed" or "FOMC" or "Oops" (Open operations)

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Bob3 reviewed this before i would attempt to post this.
This is intended to be a beginning to answer what some have asked about, hopefully it will help clear up some questions,
Chichi2