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Sven Henrich

Mar 31 • 5 tweets • 2 min read Twitter logo

What did you think was gonna happen?

They threw hundreds of billions of dollars of liquidity into a liquidity starved financial system in a matter of just 2 weeks and markets went up.
The end.

It's really that simple.

But it's not QE? Who cares? It's LIQUIDITY.
You can argue about whether it's QE or not or you can trade off of it & make money.
Sorry to be so opportunistic about it, but we are here to make money & not argue with the market.
I've tried that in the past myself. Learn & adapt.

https://twitter.com/NorthmanTrader/status/1636469742008520704?s=20

That chart on bank reserves suddenly spiking up screamed markets were gonna go higher 2 weeks ago due to the correlation, which was my point and they've added more liquidity since. If they drain it it's another story, but so far they haven't.

https://twitter.com/NorthmanTrader/status/1636469742008520704?s=20

https://twitter.com/NorthmanTrader/status/1635262769112170497?s=20

Just to accentuate the point: They added $438B in bank reserves since when I made my original suggestion that it was coming on March 13. Massive liquidity.

https://twitter.com/NorthmanTrader/status/1635262769112170497?s=20

And that was the day of the lows in March. I rest my case.

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