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It's Not The Economy, It's The Deja Deja Deja Deja Deja Vu Pre-FOMC Rally, Stupid
Today's rally marks the fifth of the last six pre-FOMC days with a strong performance for stocks (the one sell-off into an FOMC meeting this year was when consensus did not expect anything - post QE3 and pre-election). The current differential between Treasuries and stocks is as wide (and expectantly hopeful) as it was when we were 'gifted' QE3 - and that marked the top in stocks for the year so far. It seems heading into this meeting, consensus expects the QE4 Treasury-based fill-'er-up that we discussed the day QE3 was announced and given the crush in earnings expectations, the broad market's current year-highs in P/E valuations just looks remarkably over-optimistic. With today's heavy block size seen at the highs as the short-stops were run, one can't help but see this as professionals lightening up into retail hope as opposed to looking to extend the rally.
10Y vs S&P 500 into each of the last six FOMCs... (and lower pane shows a 'model' view of current equity richness to bonds near its highs of the year)
Meanwhile - valuations on the major US equity indices are pushing back to the year's highs with this latest rally... incredible... with the Russell already the year's highs!
Charts: Bloomberg
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fuck you Bernanke
It's QE to infinity. Just keep stacking. This will all blow up one day.
http://silverliberationarmy.blogspot.ca/
Deja Vu - Nothing more than a mini market brain seizure.
... especially if there is no QE4...
Sylvia, I agree. I think the market is going to be horrified tomorrow at 12:15pm.
You seem to be missing the fact that they have NO alternative.
Sure they'll call it something else, but make no mistake, they have no choice but to monetize everything and anything in order to keep up appearances for another day. Remember, they haven't destroyed enough of the economy yet where they could successfully declare martial law. They've got to make people a lot more unsure of the future, and panicked first.
As for "the market?" Well, I can only laugh and shake my head at the idea that one exists.
Back to the article...
Tyler, are those "Dejas" linear, or geometric in their effect?
sod-off Bernanke
Ready for a drop. got it.
this is so similar to july 4th 2011.
Look at XAUEUR XAU and SPX on that day. SPX broke the 61FIB from recent highs with a good bar and gold(s) dropped and bottomed.
Pattern similar too.... spooky
Music stopped a long time ago but they're still dancing humming the tune.
+2
Some apparently hum well enough to fool the others. Will be interesting to see who loses their seat because of it.
Markets. Pfffffffttttt!!!
Up is down, down is up. Nice world the central bankers and political class have created. It's gonna be one hell of a hangover when the hopium wears off.
Haha, i haven't seen tapdancing like this since i watched Mr.Bojangles.
Another episode of Weekend at Bernankies
Except in this case instead of Bernie being dead the market is.
The market is Bernie, getting hauled around like nothing's wrong! The Irony!
Yeah, fuck you for the second time in a dozen posts Bernanke!
One of hundreds saved ZH posts I refer to when feeling alone:
http://www.zerohedge.com/news/its-just-getting-stupid
WHOOP pop the Bolinger's and scoop up the caviar its PARTY TIME we got the free money men meeting again YAY!!
Am I crazy to be shorting FB tomorrow?
if you can hold a real short and you're not using options, I wouldn't be too scared.
The problem with options of course is expiry. My FB Put play on the last dip expired before being profitable. Meh. It happens but I picked the right price & direction - just needed 10 more days.
Why has gold not popped?
Because they want you to be poor, not rich!!
Not enough oil in the pot?
JG - because Platinum is being bought and against gold. Platinum is a very startegic metal as well a pm. Supply is more concentrated, and war games in N. Korea and Mideast (US sends F-16s to Egypt - who cares if Muzzie B'hood gets 'em) has drums beating.
It's the stupid stupid. God am I sick of this f**king cliche! Alongside "crossing the rubicon" it must be the most overly used phrase in finance.