Treasury Doubles Bond Buybacks: What This Means For Your Money!

So, something pretty significant got reported today. Just want to make sure that you guys are well aware. What's going on, guys? It's Ricky with your super quick market update. Let's go ahead and jump right into it. Overall, Nasdaq market is currently up 0.13% in the green from when I'm filming this video. But, as you could see, there was a very quick shift of direction. I think we were slightly in the red, and then all of a sudden, Nasdaq market began to prop itself higher. But, then after people really began to realize what is getting done, markets began to sell off. Now, again, if you don't understand this, let me explain. Breaking, the US Treasury will at least double its long-dated bond buybacks from $2 billion to $4 billion per operations beginning um what's it called? September 9th. Now, why would they be doing this? Very simple. Just like we talked about it yesterday. The 30-year bond was incredibly high. It was back to the same levels that we were at in 2007. Remember, the US doesn't want to borrow at very high rates. So, the US got exactly what it wanted, right? The this administration wants those bond yields lower. And as soon as this got announced, they dropped. Cool. They got what they wanted. So, what's the problem? Let me explain this in a very simple way. How are they going to buy back $2 billion alone, but now $4 billion with money that they initially intended to borrow? Where are they now getting this additional $2 billion? Correct. Instead of borrowing it, they're just going to print it. What does this do to your dollar in your pocket or in your bank? It devalues it instantly. And again, it's not just opinion, it's a fact. Breaking, the US dollar index plunges to an 11-week low as soon as this news gets announced because everyone sees what is going to happen. They don't have the money. They need to get it. And if they can't borrow it at cheaper rates, then they'll print it. Again, what does this mean? They're just kicking the problem down the road. Nothing new, right? Every administration has technically done this, but just exacerbating the entire issue. You actually look at this, as soon as the dollar begins to go down, what gets announced? Gold futures begin to surge over $4,500 an ounce for the first time since June 11th, hitting an 11-week high. Again, great for gold investors, but terrible for those, like you and I, that are holding the dollar. So again, I just wanted to make sure that you understood what the US Treasury was trying to do. They're trying to bring liquidity back into the market. They're trying to bring down those bond yields. And what better way in doing so and just printing more money. You guys all know how this ends, right? It's the post-pandemic rally all over again. Yes, can it be a short-term positive catalyst for the market because it provides some liquidity? Sure. But what ultimately ends up happening? Inflation begins to rocket. Then the Federal Reserve has to step in. They have to start raising interest rates, and then everyone suffers. Just like we saw in 2022, where again, if you look back, that's when markets sold off for 12 consecutive months, nearly 12 consecutive months, from the highs to the overall lows. Now, eventually markets do end up recovering as they always tend to do, but again, just be careful, right? Because if uncertainty is beginning to present itself and those red flags are present, it is our job just to be cautious. Never be afraid to be invested, but don't be a fool to use leverage at overbought levels. With that being said, again, markets prop themselves up a little bit higher. There's a specific little trade opportunity that presented itself. I missed the entire short on Micron. Now, Micron gapped back up, is currently testing highs of right around what what do we want to call this? 935 936. So, I opened up a small short position. So, if Micron does end up selling off, I'll make a few bucks and I'll do my part in keeping you guys up to date. As you can see, I'm pretty much break even. Up 100, down 100. Again, it's just consolidating as it's testing a previous resistance range. If we end up selling back off to previous lows, again, then that's where I can make a few bucks. I'll do my part in keeping you guys up to date. If you're part of my LPP team, as they got to watch me trade live this morning. Also, another big mover was Core Weave. Went from highs of $95 to lows of 88 back to highs of 93. And one of the biggest movers on the day is Moderna. Moderna announced a new phase in a drug that actually ends up being somewhat successful. And at one point, it was up, I want to say 145% on the day. I'm not joking. It's not a meme stock. There's actually news, right? It'd be a very tough stock to short and I know some people are open to the idea of shorting this thing, but please be very careful. It's moving off of news and it's moving in a very aggressive rate. So, if you want to take the trade, long or short, it comes at a great form of risk when it's trading at this level. If you guys have any questions, again, I'm always just one comment away. Feel free to reach out. And other than that, again, if you want to join us for tomorrow's live session, all we ask you to do is click that second link down below. You guys can take advantage of the current sale we have going on and again, be able to watch us and tune on in to tomorrow's live session. Let me know down in the comment section what you think about the US Treasury deciding to print money out of thin air to buy back the the bonds pretty much that they don't want to pay the interest on. You let me know if you think that that's going to be good for our economy or just make things worse down the road. Hope that earns you a thumbs up. Please consider subscribing and like always, let's make sure that we end the year on a green note. Take care, team and happy Wednesday.