The market has been like a roller coaster these past couple of days. Yesterday, everyone was anxious about Japan’s rate hike, and today suddenly everything is in the green—a surge, simply put, because the Fed gave the market a shot of adrenaline: they pumped $1.35 billion into the banking system through overnight repos.

To put it in plain terms? The Fed stuffed money into the banks, and it was no small amount, so the market got hyped.

A slightly more technical explanation: overnight repo, as the name suggests, means buying today and selling back tomorrow. It's the opposite of an overnight reverse repo.

This is a classic case of fragmented information. Like I’ve told you before, every new puzzle piece you get can completely flip your conclusion—the day before yesterday, I was emphasizing that Japan’s rate hike could trigger a major drop, but yesterday I gathered a bunch of new info, and now my conclusion is: the impact isn’t as dramatic as we thought.

Honestly, there aren’t many people in the market who can break down these macro narratives in plain language. At the very least, I think I can help beginners understand what’s actually happening, and I’m confident in that.