Thread by @MarsiliosMM

Different format this week

Review already done - so many good calls last week

https://twitter.com/MarsiliosMM/status/1454094542953586693

Skipping astro section

So on to a few charts

FOMC 4.5T into markets from March 2020 - about 3T in massive initial pump, then steadily added another 1.5T from early summer to now

But this is only a portion of the global "liquidity" ie CB handouts to markets

ECB, EU
BoJ, Japan
PBOC, China

Total 31T on balance sheet, up from about 19 pre covid, so 11T

Which as we have seen, has made its way into global markets & buys a lot of stock

Putting these first because it is the ONLY way to explain:

the relentless bid
the valuation
the options activity

in indexes & stocks, and of course all this CB largesse has driven cryptos also

SPX forward P/E above 20 since about July 2020 to now and before that ONLY late 90s dotcom market through the top

Blue line is weekly 10MA of put-call

Lower the line, the less puts, less fear
Higher the line, the more puts, more fear

Red line shows 2007 low in put-call so that was during real estate bubble frenzy

So we have more than 1 YEAR of put-call lower than that extreme, entire time

Point here is FOMC meeting ahead, probably they are under pressure to start some taper, & with Saturn direct likely

Although relatively minor & slow start, this is like telling someone who has been eating/drinking whatever they want, the DIET must start, even if baby steps