Chris Temple from The National Investor – Tue 3 Mar, 2020

More thoughts on the Fed cut and more importantly the market moves

Chris Temple joins me to share his thoughts on Fed rate cut and corresponding market moves. We discuss the theory behind the cut as well as the timing. Also look ahead to the meeting in just over 2 weeks and the market moves. With US markets down, yields continuing to fall, and the precious metals moving strongly higher it’s a good day for PM investors.

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Comments:
  1. On March 3, 2020 at 12:05 pm,
    OOTB Jerry says:

    THINK………
    https://www.zerohedge.com/health/liquidity-panic-back-feds-term-repo-massively-oversubscribed-amid-market-turmoil
    Dealers submitted a record $108.6BN in overnight repo, resulting in the first oversubscribed overnight repo operation since October (recall the total size of the overnight repo was reduced from $125BN to $100BN).

  2. On March 3, 2020 at 12:12 pm,
    Bob UK says:

    Beautiful Moon this evening. Go out and look at it tonight. Look at the stars.

    • On March 3, 2020 at 1:13 pm,
      james says:

      The invasion of Greece ! You see in the stars ! Bob UK ?

    • On March 3, 2020 at 5:39 pm,
      Excelsior says:

      Hi Bob UK – that is solid advice for anyone.

      Personally, I try to watch the sunset with my lady almost every night, and then later at night if I get all worked up looking at things on our glowing screens, then I go outside and look at the moon and starts and try to remember how insignificant our problems are in the great expanse of the universe.

  3. On March 3, 2020 at 1:57 pm,
    cfs says:

    The Fed is scared….but of whom or what.?
    Are they scared of Trump ?
    Otherwise the cut makes no sense.
    How do spell pannic ? That’s not right.

  4. On March 3, 2020 at 1:59 pm,
    cfs says:

    Why does Trump want interest rate cuts ?
    Has he run out of other options ?

    • On March 3, 2020 at 3:09 pm,
      Chartster says:

      Im not sure if I’ve ever seen a better setup for a market crash. You got the fed cutting the rate by .50 bips and a communist winning Super Tuesday all in one day…?!
      Sure is going to make an interesting week! I can’t wait to see the trolling action Trump is going to do with Bernie and Powell.
      Powell I’m sure already knows what’s coming, because it all a show for the sheep. The public announcement of the Feds end should be soon.
      As for the dems, they all might be thinking, “maybe we will be in food lines if he’s elected”🤔

      • On March 3, 2020 at 5:39 pm,
        larry says:

        Right…If this counter trend rally dies on the vine in volume then the retest will fail catostrphically….I am not bullish here regarding most world equity…but this could turn into a large consolidation patern range into election time..my 2cents

    • On March 3, 2020 at 3:54 pm,
      Temple says:

      He doesn’t want a crash or bad economy before November, for fear of getting the Jimmy Carter treatment…so he’s going to publicly and pre-emptively blame the Fed in the hopes that the fallout doesn’t stick to him

  5. On March 3, 2020 at 3:03 pm,
    SilverDollar says:

    Trump is looking for more rate cuts in order to raise the markets; Fed is acting for the same reason. But, that magic potion has lost it’s efficacy long ago.
    Here’s a very good listen from Charles Hugh Smith on the virus problem facing the US, which is not ready to face the music: https://sputniknews.com/radio_double_down/202003031078460985-prepping-for-pandemic/

    • On March 3, 2020 at 5:46 pm,
      Excelsior says:

      Agreed SilverDollar, and they are using one of the few tools left in their bag when it really wasn’t warranted.

      It is important to review when the FED has last done 50 basis point cuts in the past:
      _______________________

      Just to put things into perspective: Emergency Fed cuts were rarely a good sign. (Chart via Heieck Siebrecht Cap Advisors)

      https://twitter.com/Schuldensuehner/status/1234902465897730048

  6. On March 3, 2020 at 3:24 pm,
    OOTP says:

    It may be stupid what Powell did, but I posit that he had little choice. Had he held rates where they were, and the market would have sold off massively, which it probably would have, he would have been the one who got the blame for crashing the markets. He’d catch flack for being out of step with developments, etc.

    If a crash happens during his watch and he hasn’t lowered rates, from his perspective, this is much worse than having markets crash even though he used the only tool they have left. Now no one can blame a crash on his inaction and refusal to act.

  7. On March 3, 2020 at 3:44 pm,
    SilverDollar says:

    Another rate cut at the March meeting will have no more permanent effect on the markets than that of today. My question is what are they going to do besides cut interest? Japan has been buying ETFs in their markets. I personally think the Fed will have to stick with buying debt; the worst type and the riskiest in order to save the original buyers, the banks who they work for.
    Those big moves in gold are getting close………..

  8. On March 3, 2020 at 5:43 pm,
    Excelsior says:

    STOCK MARKET & FLU BREAKDOWN METRICS – WHERE’S THE BOTTOM?

    The Technical Traders – March 3, 2020 – Chris Vermuelen

    https://www.thetechnicaltraders.com/stock-market-breakdown-metrics-wheres-the-bottom