Market Reaction To FOMC Minutes

Tyler Durden's picture

UPDATE: Minutes after the post - Stocks getting ugly now, catching down to VIX and USD's move

Bonds were sold instantly as the more hawkish comments from the FOMC hit - as was Gold. The USD rallied and stocks dipped modestly. Once that initial knee-jerk settled, stocks have gone largely sideways to modestly lower, Treasury yields have pushed back towards the day's highs as the USD strength and Gold weakness are tracking each other perfectly for now. Unfortunately, this is not helping the price of Oil - which is higher post-FOMC. Notably, while this is clearly being viewed as hawkish for bonds, commodities, and the USD, stocks appear unphased - but it seems VIX is soaking up the equity uncertainty for now (VIX +1.1 vols at 13.40%) indicating considerably more concern than the market itself (for now). The 'bond-like' Utilities sector is the most pressured (as rates rise) for now.

USD Up (inverted), Gold Down, Treasury yields Up, Oil Up, Stocks Flat...


But VIX not happy...


and Utes are hurting more as rates rise..

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Induced Coma's picture

Thanks for a good laugh. I come for the articles and stay for the comments. 


Its been said before, I'm plagiarizing.



AlphaHunter001's picture



Some of these comments are truly funny. So first everyone is mad at the Fed for adding liquidity, then they're mad at the Fed for discussing taking away liquidity?


Isn't that what everyone is complaining about, too much liquidity/money printing? So by them taking it away, that should make everyone happy.


I don't see why anyone is surprised, we're clearly in the 9th inning for monetary stimulus in the US. With the number of jobs increasing at a stable rate (See ADP data for more accurate picutre) the economy clearly doesn't need additional liquidity.


Plus, if gold couldn't move up over the last year, what's the logical dirction when they start to pull back next year and over the next decade? Yup, $400 here we come



RationalPrepper's picture

The Fed's way of begging Congress to act on the sequester?  Cause a market mini-panic so they kick the can yet again?

GFORCE's picture

Took a long on the VIX today in a 2xETF early morning... Sweet!!

MFLTucson's picture


The American clown show led by none other than Ben Bernanke.  Go ahead Ben and end the QE and a depression will ensue as will chaos, riots and a collapse of America.  Go ahead you clown, show us what you are made of but first tip off all your Jewish friends so they can short the circus and steal more money from the American people.  This is despicable con! End QE and who buys are bonds the fucking man in the moon?  Great job taking Gold down Ben, I like the way all your friends on wall Street already knew what was coming.


AlphaHunter001's picture



what do Jews have to do with this move today? racism = ignorance


i don't see the point of racist comments with no facts or logic, simply anger from someone who's obviously long a market that's going down (gold/silver)


anger is never profitable of healthy. remember, your life is built from your mind, no one else is to blame. take responsibility and stop blaming others for your own mistakes.

casaananda's picture

I sure as hell won't buy any bonds. Nor any stocks except maybe some miners, which are beat all to Hell. Meanwhile, my stack remains and I ain't selling any of it. Not giving some asshole the opportunity to buy my PMs here.


groundedkiwi's picture

And just off Reuters, talk about easing of sanctions, but no trade in GOLD.

Tombstone's picture

Just another fake sell-off as Benny inadvertently hits the sell button instead of the snoozer.   Bulls, it is a lock that we will not see two days in a row of selling as it is against all things centrally planned.  Market to rally strong on Wednesday and recapture its pie-in-the-sky problemo.  And besides, not to worry, as all bad news has been declared invalid by The Dictator and CNBC.  So, continue to puke up your gold and bonds and regurgitate the proceeds into stocks, which are undervalued by any measure and by Goldman, the king of soothsayers.

Ned Zeppelin's picture

More jawboning to test market reactions. . . yep our yammering nonsense still works. 


electricgorilla's picture

You guys have to much faith in the Fed. Can everyone continue to believe that central planning will keep this market going ever higher forever. BTFD works until it doesn't. Will this selloff continue. I don't know. I do know that eventually this charade will have to come to an end. 

Curt W's picture

CNN monet headline,  FED sinks stocks after signaling may remove stimulus sooner than expected.

How is printing money and giving it to the banks stimulus?

MyBrothersKeeper's picture

It just goes to show you how fragile the public psyche is.  Wait until something really "happens".  The end game is when the sheep stop believeing the propaganda....we are still a long way from that in my opinion, but if we get some kind of extrenal shock that can't be ignored, the capitulation will come swiftly.