Tom McClellan Notes Fed is Pouring Money into the Economy

Thursday March 26, 2020

 

https://www.mcoscillator.com/learning_center/weekly_chart/qe_is_bullish_for_stocks_bearish_for_bonds/

Tom McClellan notes that the FED is pouring 125 B a day into the economy, good for  the stock market

 

Now in response, the Fed is starting QE to a degree never before contemplated. QE3 was $60 billion per month of debt purchases. This week, the Fed is doing purchases of $125 billion PER DAY!! The intent is that those purchases will be $75 billion of Treasuries, and $50 billion of MBS. PER DAY!! The Fed is shoving a firehose down the mouth of the banking system, and turning the valve up full blast.

Fox Business just declared that the stock market had exited the bear market with today's 1300 point rally.

 

I remarked that the move looked too strong for a fourth wave. Perhaps the fear mongers are all wrong.

Tomorrow Friday should be an interesting day! This thirty minute chart is topping out on the PMO at bottom. No doubt the FED injections are having some effect on stocks. But driving in San Antonio it is hard to imagine that the economic shock of closing down America is somehow solved.