Daily Treasury Statement Charts Update: 4/4/11

An update of the daily treasury statement charts:

 

Total Operating Balance Vs S&P 500

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The total operating balance of the US Treasury rose by $52 billion last Thursday, and fell by $63 billion on Friday (latest). Markets were choppy today, but the short-term up-trend seems to remain intact. The lagged daily treasury statement charts (shown below) seem to suggest that (perhaps after a small correction) this up-trend could continue for about 4 weeks. Of course, I should remind you that this interpretation could be deemed to be alchemistic in nature. The broad thesis is that net withdrawals are bullish for asset prices (on a lagged basis) and net accumulations of cash are bearish for asset prices (on a lagged basis). For a more detailed interpretation of these charts see here.

 

Total Operating Balance Vs Dow Inverted (LAGGED)

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Total Operating Balance Vs S&P 500 Inverted (LAGGED)

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Total Operating Balance Vs Russell 2000 Inverted (LAGGED)

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Total Operating Balance Vs VIX (LAGGED)

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See here for our collection of rare historical economic data.

Posted Apr 4, 2011