Daily Treasury Statement Charts Update: 4/4/11
An update of the daily treasury statement charts:
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.
Recommended: Charting the Federal Reserve's Assets - 1915 to 2012