Daily Treasury Statement Charts Update: 7/3/11

An update of the daily treasury statement charts:

Total Operating Balance Vs S&P 500 Inverted

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The total operating balance of the US Treasury continues lower, decreasing by $20 billion on Friday (latest data).

 

Using the thesis that heavy expenditures are bullish for risk assets and accumulations of cash are bearish, I now present the total operating balance with some risk assets lagged ~40 trading days. The interpretation remains the same as the previous update; the market could remain weak for about 20 trading days before swiftly moving higher for a final ‘crack-up’ move.

 

Operating Balance Vs Dow Inverted (LAGGED)

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Operating Balance Vs S&P 500 Inverted (LAGGED)

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Operating Balance Vs Russell 2000 Inverted (LAGGED)

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Operating Balance Vs VIX (LAGGED)

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The price action in the stock of Ritchie Bros. Auctioneers was bearish today, the stock declining by 3%. I explain the importance of the Auctioneer stocks at market extremes here. The chart follows:

 

Ritchie Bros. Stock
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Posted Mar 7, 2011