May I point out that the previous times the Fed was forced to spike repurchase agreements where associated with market excess, crashes & recessions.

https://twitter.com/NorthmanTrader/status/1206921566140940290

The Fed is printing money like it’s the depth of the GFC!

It’s dealing with a repo liquidity crisis like 2008 but mystified as to the cause.

The Fed's panic at this point in the economic cycle may hasten the unwinding of the imbalances it is so desperate to maintain. #GotGold? pic.twitter.com/oRQ7UfwwHW

— Kevin C. Smith, CFA (@crescatkevin) December 14, 2019

Rising global bond yields underlie the repo crisis!

Losses in crowded duration trades may be the cause of the liquidity crunch.

The long end has continued to sell off despite huge Fed intervention.

Beware. The prior two rate hiccups signaled a broader equity nosedive ahead. pic.twitter.com/P3qUjHY4wL

— Kevin C. Smith, CFA (@crescatkevin) December 14, 2019

Uber bullish consensus never ends well.

Implied vol for junk bonds at its lowest level ever.

All previous dips preceded major selloffs in corporate bonds.

Key point:

High yield spreads are at their lowest level since June of 2007 with record corporate leverage today. pic.twitter.com/eKg8ATSs6R

— Otavio (Tavi) Costa (@TaviCosta) December 17, 2019

Sentiment: Put/Call Ratio concerning on all time frames.

5d near the most overbought in *seven years* (range shifted in 2013). 10d/21d also overbought.

But the BIG change is the 50d now *fully overbought* – going vertical and nearly identical to the Dec 2013/17 year-end ramps. pic.twitter.com/E6jjoBfG9K

— Macro Charts (@MacroCharts) December 17, 2019