Total Disconnect Between FX/Bonds And Stocks

It's one of those days. The world looks on as Bernanke speaks and the S&P 500 levitates 20 points in a straight line wealth-effect-confirming way. However, it appears the FX and Bond markets just can't get excited about all this... Of course, all that matters is the foot on the neck of spot VIX (which is now back below 15%) and Bernanke's confirmation that housing has bottomed (again).

and the fact that S&P 500 futures just broke above the closing VWAPs from the last two plunges... look at where we bounced to on Tuesday - Monday's closing VWAP... and today, we bounced to Tuesday's closing VWAP...

allowing the big boys caught offside to exit?

Charts: Bloomberg

Comments

[thismarketisrigged]

the thing is though, the buying is coming from the fed, not even retail investors. that is what sickens me. all this just to make there fucking banker friends happy.

i really hate the fed, i fucking hope something bad happens to these assholes

[Stuart]

The puppet masters did not like yesterday's trading.

[Rodders75]

Re Gold, an interesting technical indicator is the Bloomberg Commodity Sentiment Gold Bullish index. Since the inception of the survey (April 2004) readings below 30% have marked bearish extremes and contrarian buy signals. Whenever it has moved below 30, gold has historically posted an average return of 21% on a 12-month horizon, with a 100% hit rate. It has also been positive on a 1 wk, 1m, 3m and 6m basis. Today we are at the lowest level in the indicator since Dec 2011, and it is screaming "Buy".

[michigan independant]

Soothsayer: Beware the ides of March.

Caesar: What man is that?

Brutus: A soothsayer bids you beware the ides of March.

allowing the big boys caught offside to exit? yes