Just Plain Pathetic

We are speaking, of course, of the Fed’s decision to punt yet again, and for a reason that is not mysterious at all. To wit, our financial rulers are petrified of a stock market hissy fit, and will go to any length of dissimulation and double-talk to avoid triggering a crash of the very bubbles their policies have inflated.

Charlotte Is Burning: Waking Up From The American Dream... Finally?

When Charlotte erupts, we need to pay particularly close attention. Some still think that this nation is doing just fine except for those ugly pockets of poverty and segregation that routinely explode like Baltimore or Chicago. Others know better, but hope to move away from, and thus avoid addressing, the persistence of ugly racial injustice and the cries for help coming from black families. Charlotte is their wake up call.

Traders Quickly Get Comfortable With Stocks Again. But...

Short-term volatility expectations plummeted during Wednesday’s post-Federal Reserve meeting stock market rally. However, considering this rush out of the VXST occurred from an already relatively low level (17.22), prior similar occurrences suggest the upside is perhaps limited here for the S&P 500.

One Of These Polls Is Not Like The Other

Far be it from us to claim that a mainstream media entity is exhibting bias or 'tweaking' its data, but a glance at the last 10 major national polls of the presidential election suggests 'something' is up...

NAR Stumped As Existing Home Sales Slide Continues; Lack Of Household Income Growth Blamed

"It's very concerning to see that inventory conditions not only show no signs of improving but have actually worsened in recent months from their already suppressed levels a year ago," said the NAr's Larry Yun. "While recent data from the U.S. Census Bureau (shows that household incomes rose strongly last year, home prices are still outpacing incomes."

Why Futures Are Surging Again: RBC Explains

And just like that: risk-parity / various other leveraged ‘target risk’ strategies (S&P Target Risk Aggressive Index saw its best day since first week in July yesterday) are back in the driver’s seat, as the Fed and BoJ went back to their “happy place” of a vol-suppression kind of world.  That is exactly who / what we are seeing in equities futures, UST futures / curves right now.  Lever it up again!

Dennis Gartman: "We Are Entering The “Zimbabwe-isation” Of The Global Capital Markets"

"We are, it seems to us, entering the period we shall call the “Zimbabwe-isation” of the global capital markets and we say that with all sincerity… and requisite trepidation.  This will end badly of course. These things always do, but until they end… until the music finally stops… the game has to be played and the music, as it plays, has to be enjoyed."

Twitter Suspends Account Of Conservative Law Professor "Instapundit" Over Charlotte Tweet

In a move that is certain to provoke more accusations of Twitter censorship, this morning Twitter has suspended the account of Glenn Reynolds, aka @instapundit and creator of the Instapundit blog, a University of Tennessee law professor and a conservative columnist for USA TODAY, following a tweet that urged motorists to run over demonstrators blocking traffic in Charlotte, N.C., caused an uproar.

Frontrunning: September 22

  • Stocks Advance in Unison With Bonds as Fed Inspires Global Rally (BBG)
  • Soothing Fed gives stocks their mojo (Reuters)
  • Yellen helps Clinton dodge a bullet (Politico)
  • State of emergency called to quell Charlotte unrest over police shooting of black man (Reuters)
  • Hillary Clinton Leads Donald Trump by Six Points in Latest WSJ/NBC Poll (WSJ)

So What Do We Do Now That The Fed Stood Still

That dud landed with a thud. It fits the FOMC’s desired narrative to have the latest decision called a “hawkish hold.” That’s a very sympathetic description of the event. We’re supposed to take comfort that the economy really is (we promise) getting closer to meeting the necessary goals, all meetings are live and they’ve got December in their sights. I’m sure it is. But we’ve heard it all before, as well as the caveats.