Stock Market Importance of the Final Hour

By: Anthony_Cherniawski

Here is some information that I thought I’d pass along.

The first is an article by ZeroHedge, which begins, “For months, the so-called "Smart Money" has been on-board with the incessant rally in US equity markets, buying every dip - no matter how shallow.

However, since the end of November, a very different regime appeared to take hold.”

I also have been watching the market activity during daytime hours and have noticed that, with few exceptions, the markets have declined in the final hour of the day.

In addition, it does not appear that the Fed has not yet done the December roll-off. In its implementation note it says. “The Committee directs the Desk to continue rolling over at auction the amount of principal payments from the Federal Reserve's holdings of Treasury securities maturing during December that exceeds $6 billion, and to continue reinvesting in agency mortgage-backed securities the amount of principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities received during December that exceeds $4 billion. Effective in January, the Committee directs the Desk to roll over at auction the amount of principal payments from the Federal Reserve's holdings of Treasury securities maturing during each calendar month that exceeds $12 billion, and to reinvest in agency mortgage-backed securities the amount of principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities received during each calendar month that exceeds $8 billion. Small deviations from these amounts for operational reasons are acceptable.”

The decline on the 14th and the dip so far this week do not appear to have met the criteria for a roll-off. In addition, there are no releases discussing that matter. Either the Fed is being very circumspect in that matter or they haven’t done it ye for December.

Regards,

Tony

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