The debt ceiling is a ridiculous political tool that is hurting the economy, the banks, and the stock market.

For a currency-creator, money is like smiles for an individual; neither can run out of either. Which is why the ‘debt ceiling’ is akin to economic-self-harm. Imagine not allowing yourself to smile at your children or your friends because you have reached some arbitrary limit of smiles. Insane, right? Well, by not raising the debt ceiling, that is exactly what the US Congress is doing. …


Here is the “radical,” “far-left” agenda items that the Democrats want to provide the American public:

  • expanded tax credits for lower- and middle-income families,
  • universal pre-kindergarten,
  • affordable childcare,
  • two years of free post-secondary education,
  • more health care premium subsidies for Obamacare,
  • high quality elder care,
  • more funding for public housing and infrastructure,
  • technologies to fight/accommodate climate change,
  • electric buses and cars,
  • improvements to the power grid,
  • residential solar technologies.

And the minority party has declared: “one-hundred percent of our focus is on stopping this new administration”.

Why?….Because, unlike the Trump tax-cuts for the rich, the opposition is now saying these…


The stock of Treasuries is generally misunderstood to be the national “debt”. In fact, it is the record of the net transfer of funds to the private sector from the federal government. It is not money that was borrowed by the Treasury. The federal government is monetarily-sovereign, which means it creates the money it spends and destroys the money it taxes back. The Treasury does not borrow what it can create as needed.

When the Treasury spends more than it taxes back, it registers a deficit (net-spending), and this deficit is matched by the sale of Treasury bonds. This sale…


At the end of March, the Fed reinstated the required reserves into the SLR of the banks. In order to avoid problems with the banks’ ability to maintain their ratio requirements, the Fed opened the overnight reverse repurchase facility where banks could funnel excess reserves into T-bills and earn interest — the Fed swaps T-securities for cash (takes in cash, and puts out T-securities). This is the opposite of QE. This is tightening; reducing liquidity.

However, because the Fed is continuing with the SOMA expansion, the net tightening is somewhat blunted. Subscribers are well aware of the fact that the…


In this piece, we explain why retail investors who wish to accumulate wealth should limit their day-trading activities.

The more frequent the trading (like day trading), the higher the chances of loss overall. This is something I learned both from experience and from observation; wealth is accumulated by identifying the primary trend and staying with it, not by high-frequency trading.

There is a fundamental principle at work which results in a concentration of success in a minority number of players. Two models describe this tendency: Price’s Law, and Pareto’s Principle.

Price’s Law says that 50% of the work is accomplished…


Where are we? At the edge of a cliff, or the foot of a mountain?

In the weekend summary, we pointed out that the McClellan summation index RSI was poised to turn back up while still above 30, like it did at the start of the November recovery, and that is what it did on Monday. This increases the odds that we are at the foot of a mountain (chart below).


Equal weight (RSP) is outperforming the SPX. This demonstrates widespread, underlying strength in the market. It is still early in the recovery…compare the patterns with 2009–2010.


Fund Flows

The wild ride in the stock market during 2020 has served to underline and support our working hypothesis — fund flows and fear drives the stock market. The market is not driven by news, even news of a once-in-one-hundred-years pandemic. News, whether financial or Geopolitical, can temporarily “jiggle” the market, but it does not drive its primary trend. And the market is not driven by the economy either, even if the economy shrinks by 33% almost overnight. …


Minimums in the nominal weekly put:call ratio when associated with a down-spike in the 10-day MA, correspond to tops in the SPX 80%.

ANG Traders

Join us and take advantage of our four decades of experience at angtraders.com


By David Huston and ANG Traders

The most over-traded stock in early 2020 was Tesla, which shot up 125% in the first six-weeks of the year, fell 62% during the pandemic shutdown, then climbed 468% by the end of September. While Tesla has more substance than “tulips” or “Beanie Babies,” the continuation of its meteoric rise can be reasonably questioned. Even if Tesla represents the future of electric vehicles, much of that future has already been accounted for in its current stock price. …

ANG Traders

Forty years of private equity trading, and still learning.

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