Last week I described the market as the Fed with it's MoneyPump weapon of choice versus the Cycles, and their tendency to wreck havoc on markets in autumn. Well, the match has been decided, and the MoneyPump continues to reign supreme as the primary driver of U.S. equity prices now.
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The latest release of Fed balance sheet data this evening shows a strong pop in the 7-day lagged MoneyPump figures derived from the balance sheet plus a fraction of the ECB's balance sheet. Once again, MoneyPump expansions are lining up with fresh rallies in equity prices.