Daily Treasury Statement Charts Update: 11/4/11
An update of the Daily Treasury Statement Charts for 11/4/11:
The total operating balance of the US Treasury fell by $11.5 billion on Friday (latest). Most conventional ‘risk assets’ closed slightly negative yesterday; with major equity indices, precious metals, and other commodities all taking a breather.
As I have written in previous updates - The interpretation of the lagged daily treasury statement charts (see below) remains the same: that (perhaps after a small correction) the 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