Notes From Underground

We are taking a break to recharge the engine. If anything breaks while we are away from the desk we will write about it. Otherwise we will be smelling the flowers for a 12-day period.

The first quarter has been interesting, to say the least, and we look for more of the same. Our eyes will be monitoring the divergences that have taken place. We will try to come to terms on the persistent rally in equities even as the volume has failed to confirm. The carry trades will be on our radar to see if they reassert themselves as a barometer of risk. The FED QE winding down at the end of the quarter will provide us with plenty of market impact and the need to watch the reverse repos and the interest rates on bank reserves will add to the mix. If we really get bored, there will always be the PIIGS to keep us busy. And, of course, as long as the wheels of global politics grind on we will kept active. We will answer all relevant e-mails and will be appreciative of being kept abreast of the relevant news. YRA

Tags: Fed, QE

This entry was posted on March 11, 2010 at 11:21 am and is filed under Federal Reserve. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.