Daily Treasury Statement Charts Update: 9/3/11

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 was flat yesterday (latest), although it is clearly headed lower on a longer-term basis. Markets remain on the weak side.

 

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 updates; the market could remain weak for about 17 trading days before swiftly moving higher for a final ‘crack-up’ move.

Total Operating Balance Vs Dow Inverted

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Total Operating Balance Vs S&P 500 Inverted

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Total Operating Balance Vs Russell 2000 Inverted

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Total Operating Balance Vs VIX

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Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression

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Posted Mar 9, 2011