Draining The Swamp

As we keep creeping higher one put holder after the other bites the dust – in typical OPX fashion a merciless bear squeeze was bestowed upon the bears. Before I talk about the bigger picture however, a quick look at the updated channel chart:

Is it a bird – is it a plane – no, it’s the equities market on earning fumes!

Okay, now this is what I really want to talk about. Just out of curiosity I checked out the Slosh Report on my iPhone this morning. And since I’m the inquisitive type I decided to expand the chart into early August, which is the chart you see above.

Now, last time I talked about this (also more background on TOMOs and repos in that post) we were supposed to drop to 189 Billion tomorrow and it seems that they upped it a bit as we’re now close to 240 Billion. But look at that drop off looming towards the end of July – now doubt that these numbers will be corrected to the upside again, but it seems to me that the Fed is beginning to slowly drain the swamp. Monopoly money is being pulled out of the banking system – and if that trend continues it will affect the funny money available to bang equities to the upside.

Again, anyone more verse in negotiating the credit markets is strongly encouraged in chiming in here. If I’m seeing pink elephants I’d like to know of course, but if I’m on the mark the implications would confirm my medium term outlook (which is to the downside).

1:30pm EDT: Geronimo is kicking ass and taking numbers again today. 4 for 4 in the past two days 🙂

2:20pm EDT: Just added more short positions – let them kick this turd higher – I’m not even sweating. BTW, I’m running off to a doctor’s appointment in a few minutes – time for a new oil change. So, there won’t be a wrap up post but thus far:

geronimo/ES: +5 (2 for 2 again)

This thing has been on fire lately but for some reason I see very few subs coming in for geronimo. So, either you guys think Eric and I are full of shit, or this place is mostly frequented by small players – very strange… Well, we keep banking coin on our end 🙂

3:00pm EDT: Make that 3 for 3 for geronimo today (+7.5). Okay, I’m heading out…