This morning, we walked through the real reason the market is acting the way it is, and it's not what you're hearing from the usual sources.
Behind the scenes, the U.S. Treasury is flooding the system with short-term debt. That debt doesn’t just sit in money markets. It acts as collateral, triggering trillions in synthetic buying power through the repo market.
This kind of liquidity doesn’t just drift around. It moves quickly, concentrates, and creates real pressure under the surface.
Here’s a quick recap of what we covered:
- Why the Treasury, not the Fed, is driving the next leg of this market
- How T-bills are unlocking leverage across institutions
- What this means for volatility, momentum, and reversals
- Where that liquidity is going and why one stock is soaking up more than its fair share
Here’s the presentation, for those looking for it:
Click the image to view or download the slides.
