Home > june 2017 > June 19, 2017 Rally cuz China PBOC tossed in more Liquidity

June 19, 2017 Rally cuz China PBOC tossed in more Liquidity

June 19th, 2017

Tonight the PBoC (after it failed to push up interest rates after the FOMC meeting), added 120 billion yuan (about 18 billion USD’s) in Market Operations. Asian Session threw a party and rallied up over it. Our Futures in the Europe Session are up about .30% and Naz is up almost 1%. VIX is actually Green and Aussie is down .24% so many are not as giddy about this rally. Oil is also dull down .16%. May China Housing Data showed a slower build YoY, but mostly flat MoM. Yet, Shanghai Housing Data for last week showed a continue move to sluggish. Brexit talks start.

june 2017

  • Trading_Nymph

    PBOC injects 120b yuan into financial system
    China | Jun 19, 15:30

    China’s central bank Monday injected 120 billion yuan (17.65 billion U.S. dollars) into the financial system via open market operations to ease liquidity pressure.
    The operations included 50 billion yuan of seven-day reverse repos, 40 billion yuan of 14-day reverse repos, and 30 billion yuan of 28-day contracts, with interest rates of 2.45, 2.6, and 2.75 percent, respectively, the People’s Bank of China (PBOC) said on its website.
    The PBOC attributed the new operations to a huge decline in overall liquidity due to factors including payments for government bonds.
    Offset by 10 billion yuan of maturing reverse repos, the PBOC injected a net liquidity of 110 billion yuan into the market through reverse repos on Monday.
    China has set the tone of its monetary policy in 2017 as prudent and neutral, keeping an appropriate liquidity level but avoiding excessive liquidity injections. -Xinhua

  • panther341

    back to the wfm/AMZN deal: WFM was paying a dividend of about 1.5% – which is better than any bank pays. AMZN of course pays no dividend. Likely there weren’t alot of peeps in WFM just for the dividend, but ….

    30 years ago Value Line introduced me to the concept of using utility stocks as a bond replacement. I knew peeps who used to trade some of the oil stocks on a multi month swing trade – something they might do once a year – buy low, collect the dividend for a couple of quarters, then sell when it got back to the high end of the prior year’s range. They would do this only with the highest dividend yielding stocks – everyone’s favorite was OXY. The fat dividends would protect them to some degree against a downside move. This was a game my generation did NOT invent. LOL

  • panther341
  • Trading_Nymph

    snag this charts at ZH on China Liquidity, once they release it the 7 day, 14 day and 28 day has to be paid back. Which could be the link to DeMark system on rallies of 7 days can’t last https://uploads.disquscdn.com/images/b9f2ec02777cc9edbca88076693bdc83c8f813f630402e115066fd06027cac15.jpg https://uploads.disquscdn.com/images/1ff44d899d609dbee2e29d583f4ceb510614b3e21e5378404a7e34404bf9f537.jpg ????

  • Trading_Nymph

    lol they didn’t tell them that they don’t matter anymore…they are the grandma’s giving 1.00 in birthday cards. Market wants the huge Gift Cards from China and Japan in their birthday cards..lol.

  • Trading_Nymph

    Only really works in a bull, flat market..Utilities are now exposed to so many ETF’s that they are in, when ETFs are dumped in Micro Seconds by algos those holding the bonds vs the dividend stocks will be happy campers imho.