Are Central Bankers Behind This?

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A Most Profitable Market Mystery

By Graham Summers

Last week I outlined how the Fed will soon be buying stocks outright.

If you missed it, the run-down of my work is as follows:

  • The Fed is now buying corporate bonds, municipal bonds, and other assets that it is technically NOT permitted to buy according to the Federal Reserve Act.
  • The Fed is getting around the law by creating credit facilities with the US Treasury. The Fed then prints new money and gives it to the Treasury which coordinates with a large broker (BlackRock) to buy the assets on the market.
  • In the contract the Fed signed with BlackRock, the Fed explicitly gives BlackRock the right to buy “stocks, bonds, other securities.”

None of the programs the Fed has introduced currently involve it buying stocks. In this context the Fed would only put the word “stocks” in this agreement if it was planning on buying stocks in the near future.

Which brings us to today.

An Invisible Hand Pushing the Markets Higher

While the Fed is technically not supposed to be intervening in the stock market, “someone” has been pushing the market higher via the overnight futures session.

JPMorgan put out a research note last week explaining that ALL of the market’s gains since May 1 have occurred during the overnight futures sessions. During normal daytime hours (9:30AM to 4PM EST), stocks have technically gone NOWHERE for two months.

chart of S&P 500

In simple terms, “someone” is ramping the market higher in the overnight session – when liquidity is low, and the market is easier to manipulate. I believe that someone is a central bank.

Are Central Bankers Behind This?

Before you label me a conspiracy theorist, consider that the CME Group, which manages the futures markets, has a program that is literally called the Central Bank Incentive Program.

This program is designed specifically to give central banks a discounted rate on their purchases of stocks, bonds, interest rates, and other futures.

So we know for a fact that central banks are permitted to buy futures. However, I actually believe central banks are doing more than this. I believe they are actively intervening in the markets during the open session as well.

And I’m convinced that I’ve discovered precisely how they’re doing it…

A Brand-New Way of Investing

Thanks to a recent research breakthrough…

I’ve uncovered massive pools of anonymous money that mysteriously appear in the stock market at roughly the same time each week.

Due to their size and unique pattern, I’m certain that these massive trades are coming from central banks.

And by simply tracking them, I’ve proven how you can predict exactly which stocks are set to soar… before it happens…

Giving you the chance to pull consistent cash from the market just about every week.

If you’d like to learn how you could profit from my unique discovery, please click here.

In Other News

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MARKET MOVEMENTS

Closing Data for Today

DJIA26,840.68↑ 0.60%
S&P Index 5003,258.11↑ 0.84%
NASDAQ10,833.07↓ 1.09%
Gold1,840.85↑ 1.18%
Silver21.54↑ 5.73%
Bitcoin9,380.00↑ 2.19%

  • The EU reached a landmark $857 billion stimulus package to address the coronavirus pandemic.
  • The antitrust subcommittee of the House Judiciary Committee will speak with top execs from Amazon, Google, Facebook, and Apple next Monday.
  • Coca-Cola sales fell 28% in the latest quarter as fewer products were sold at bars and restaurants, many of which are still closed (or reclosed) due to the pandemic.

Cheers,

Shane Ormond
Editor, One Last Thing

Graham Summers

Written By Graham Summers

Graham Summers has spent over 15 years providing high-impact investment research to retail and institutional clients. He is an expert at unraveling the big picture for the global economy — and finding the best ways to profit for investors.