Daily Treasury Statement Charts Update: 8/3/11
An update of the daily treasury statement charts:
The total operating balance of the US Treasury rose by $5 billion yesterday (latest), although it is clearly headed lower on a longer-term basis.
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.
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