Daily Treasury Statement Charts Update: 5/4/11
An update of the daily treasury statement charts:
The total operating balance of the US Treasury remained unchanged on Monday (latest). It now stands at roughly $55 billion. Markets were choppy and finished out the day roughly flat. As I mentioned in the previous update; 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