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Fresh from the Trading Room: Strong opinions, weakly held
In the 2024 January 17 report, Inspirante Trading Solutions underscores the necessity of open-mindedness and disciplined risk management in a climate of ambiguity, exploring the opportunities presented by relative value trades. chart A key indicator of market liquidity is the Federal Reserve's balance sheet adjusted for the Treasury General Account (TGA) and the Reverse Repo Facility (RRP). Since late 2020, the U.S. equity market, notably the Nasdaq-100 Index, has been closely aligned with these liquidity metrics. However, the Nasdaq-100 has recently shown a notable divergence from the underlying liquidity trends. ... (full story)