Many people seem shocked the market is so strong despite the Coronavirus. Why?
A market dominated by passive flows, short volatility trades, share-buybacks, and dealer gamma is not based on fundamentals anyway.
The true shock occurs if supply chain problems lead to inflation.
— Christopher Cole (@vol_christopher) February 19, 2020
what the hell is happening? Where are the sellers??
— Jim Cramer (@jimcramer) February 19, 2020
When Fed releases its balance sheet around 4:30 ET tomorrow (as of today's close) it should show (ex-MBS impact):
Total repo outstanding of $164 bln, flat from last week (+8 ON, -8 term)
Tbills purchased +$7 bln
Cpn Tsy +$2bln
Weekly Total +$9 bln (+$18 bln YTD)
— Fire Fly (@flowfocus) February 19, 2020
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