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.

Soothing Fed Sends Global Stocks, US Futures, Commodities Higher

Following the Fed's "hawkish hold" and the BOJ's "confused contradiction", global risk (and non-risk) assets got the green light, and as a result stocks and bonds rallied in Asia and Europe, with US equity futures rising another 0.4%, advancing with oil and industrial metals, as iron surged in Chinese trading.

$195 Billion Asset Manager: "The Time Has Come To Leave The Dance Floor"

"When the supposed solutions to the Fed’s dilemma are merely new “problems,” you know you are approaching the cycle’s end... long-term investing is predicated on not just knowing where the happening parties are during the reflationary parts of the cycle but more importantly, knowing when the time has come to leave the dance floor. In our view, that time has already come."

Bill Fleckenstein Slams CNBC "Jerk" - "Don't Get In My Face Because I Won't Join Your Party"

Having been invited on to CNBC to discuss his views of the market, famous short-seller Bill Fleckenstein explained rather eloquently that QE4 is coming and people will wake up to the fact that central bankers "are the arsonists that create the fire, not the firemen that put it out." This non-mainstream view was treated with disdain by CNBC host Tim Seymour who slammed Fleckenstein for "missing out" on the "artificial market's" gains. The response was epic.

Italy's Earthquake: Will It Revive Their Economy?

As long as the Italian public will believe in “the blessings of destruction,” and in government-led recovery, which diverts capital from productive to nonproductive uses, earthquakes will continue to be, quoting Giovanni Birindelli “the health of democracries.” Meanwhile, politicians will have the intellectual power of using the broken-window scheme as an expedient to extend their tentacles over the private sector, in the form of more public debt, increased deficits, and higher taxes.