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Post-FOMC: A Market Scorned
Well that escalated quickly... the S&P is now 30 points off its earlier highs and it seems (for once) that it is stocks and none of the other risk-assets that are taking the brunt of the disappointment. And no, it wasn't the mention of a June taper that spooked markets: as the Fed itself said that will be a function of the economy, and as everyone knows there bad news and good news are both goods news. What spooked the market is that finally someone on the FOMC is not only acknowledging asset bubbles, but putting it in writing: "a few participants expressed concern that conditions in certain U.S. financial markets were becoming too buoyant.... One participant cautioned that the emergence of financial imbalances could prove difficult for regulators to identify and address, and that it would be appropriate to adjust monetary policy to help guard against risks to financial stability." Now this is a problem because unlike the economy where QE may or may not trickle down to the unemployment rate (it won't as QE is causing it but fear not - more QE is just around the corner to fix a problem caused by QE) asset bubbles only get bigger and bigger and bigger, until QE has to be not only tapered, not only stopped, but actually unwound. And with some finally on the record, the blame will be cast squarely at those who ignored the first warnings.
Post-FOMC Performance: ES 1658 -8.5, 10Y 2.01% Unch, Gold $1361.25 -$2.25, DXY 84.28 Unch
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Everytime ZH shows this goddamn Ron Burgandy video the market ramps higher before It's over.
"Buoyant"! What sort of a fucking word is that?! It doesn't even begin with an "M". Fuck you Bernanke and your stupid paper money. Go to hell - where you came from!
Looks eerily similar to another chart of an asset near and dear to folks' hearts on here...
James did you warn everyone on seeking alpha to take profits?
I had actually thought gold looked like it was in for a mini rally this week and then Bernanke had to go and ruin everything.. shows how tenuous things are.
Who is talking about gold? This was your big chance to warn somebody about something ahead of time for a change! You could be the hero of those stock pumping websites. This is your time to shine James. Don't waste it here with is PM guys. We are hopeless. Run James! Run like the wind and get the word out!
A different type of boating accident?
http://www.foxnews.com/us/2013/05/17/gold-shipment-valued-at-625000-vani...
"...a whale's vagina."
"once the American Army started moving on Paris they knew they were in the clear."
You know that all the bullion banks and big GLD players - the only ones who can exchange shares for actual bullion - are doing just that? The downward price action in paper gold is a play on the paper-physical basis. Those in the know are trying to hoard as much physical coinage as they can.
That's because gold, unlike you, is a true ASSET.
Mayhem I am a total fucking asshole for taking James bait all to often. I need to ignore him. As a matter of fact, if you agree that I need to ignore him please downvote this post. I will start red arrowing it myself.
Ignore who? Who is this James person you speak of and why are we ignoring him? O.T. I think this is the first down tick i've ever given you.
James Doc! James Cole..the guy above me! Ignore himohiseewhatyoudidthere!!!
LOL
Actual picture of US. Attorney James Cole:
http://www.whistleblower.org/storage/cole_big-355x319.jpg
You're being baited by a hilariously awkward mustachio'ed suit.
Actual picture of US. Attorney James Cole
You're the first person to actually notice that, but he's James M. Cole.
He actually did have to
He lives there. Polishes Hitlers boots. Shovels shit out of the mass-murderer ward.
Blows Satan and gets watched.
"markets were becoming too buoyant"
I thought you wanted buoyant.
That often happened with the "Deer in the headlights" picture to. Hmmm.
Bring on the DEER Tyler!
Oh...and add the chart of the RUT! STABLE!
The deer only comes out to play when it's really, really bad.
I'm sure we'll be seeing her very soon.
Standing in front of an empy COMEX vault?
"Say it to my face bro"
http://24.media.tumblr.com/tumblr_m925o24Sae1rz2lu7o1_500.jpg
(this one is cuter).
Like (FED) rats leaving a sinking (Bernanke) ship...
Bernanke will in the near future be on a yacht with blow & hookers, and these other FED dickbrains (yes, Yellen is a dickbrain too) are starting to figure out that there will be finger-pointing blame post-Ben.
Beer in video ! Mmmmmmmmmmmm
think I'll grab one
Kev' downing 3 Red Bulls and pushing every BUY button around him. It is a classic, even grandiose BTFD for weekly calls.
Absolutely, Ben and the TBTF are willing to take a small hit to keep things looking real.
Unless they were short today of course. Remind me, what's the trading record of those TBTFs again?
those trading houses are INSIDE the bank now. Glass Stegal has been repealed. "and that's quite the rally on BofA off the End of Days low."
No shit, and I certainly do see any bank puppet (congress person) interested in bringing back Glass Stegal anytime soon. I remain long black markets and sharecropping.
A) The TBTFs do God's Work.
B) God then rewards the TBTFs with near-perfect trading records.
C) This is why Jamie Dimon is richer than all of us.
Is that a multiple choice question? If so, you forgot D) all of the above.
Unless they were short today of course.
By the end of the crash they'll own everything.
Screw studying economics or finance to try to figure whats going on and where its headed.
Naw, better study criminology instead . . . or save all that money and just watch the Godfather DVDs.
THATS how things work these days.
Malware Official Antigravity Rehypothecation
The Little Bourse of Horrors: "Feed Me!!!!!"
I for one, am shocked that a reversal day happened less than 24 hours after GS raised its SPX target to the moon
- A thing Nobody Said
Send in the algo-recalibration crew. Seems there's a glitch in the Matrix.
When's the last time there were two reversals of this magnitude in a week? I mean, apart from women deciding what to wear?
REDDDDD!!! REDDDDDD!!
HB...over a single-malt last night, I moved you up to #2 on my personal ZH "best avatar" list. Only Sudden Debt bests you, and he's on negative watch (because of his all caps rants). FWIW.
Dude! I'm flabbergasted ! BTW, Ive been sipping on some nice Macallan 18 here. Thanks!
Very nice. You better be using a righteous and worthy tumbler, friend. ;)
No doubt!
This is nothing. When the real selling starts this market will fall apart faster than a lie flying out of Obama's open mouth. The robots will recalibrate and continue the churn higher. The fed can jawbone "bubbles" all it wants, but it's pure BS until there is some real action taken.
Agreed Doc. This is setting up as a BTFD. If we are down 700 at the close I may change my mind.
calling a bottom now?!! RUN FOR THE HILLS! THE MONGOLIAN HORDE IS HERE!
That's my take, I was going to say 1000 pts wiped out in seconds, but 700 works too.
it's accelerating
Like I said earlier, when there is 1000 pts wiped out in seconds then this is nothing. The 10 year has barely moved. when the sell off starts the 10 year will push toa 1% yield.
What if the selloff is precipitated by the implosion of the 10Y UST and upward thrust of yield? Seems to me that the 2 largest sov debt markets are starting to exhibit higher volatility and are in jeopardy of getting away from their respective central banks. What if it happened at the same time? Mayhem perhaps?
Show me S&P with no comma in it and maybe I'll start thinking the jig is truly up. Otherwise, Ponzi on, Garth!
Stocks AND bonds are going to go to shit together. QE benefits both; no, lower, or negative QE hurts both.
DOW and S&P end the day green.
Someday someone who is sitting on a ton of paper profit (GS, BAC, JPM, etc. take your pick) is going to say "You know what? That fuckin' guy has lost control. Time to break ranks and pull the trigger". Then the house of cards that Bernanke has built will fall. But not this day!
It is unclear, as of now, HOW I'm going to soil myself over today's moar. The when, 330ish, of course. Make no mistake, though, the next hour and a half are going to messy. Life is good. And I have the Ben to thank for all of this glory and high living.
This may be the greatest chance to BTFD we get all year if QE continues....if not, then this may be the greatest time of the year to go short. Either way, you gotta make a move
Spoken like a true, four-RedBull-a-day yield chaser.
(BTW, apart from the laws of mathematics failing, QE is going to continue. Plan accordingly)
QE continues because there's no alternative.
But it's obvious that stocks are in a bubble and the economy has shown very little to no improvement.
Fat cat bankers are making a killing and their policy privileges are killing people.
Either market goes down hard, bankers give up gains or heads need to roll.
The imbalances are no longer tolerable and the tensions are palpable.
maybe.... some people are starting to question the quantity of jobs being created by billion injected and.... the answer is , please Ben Help us on this question!
Soooooo.... I guess this isn't Tuesday?
you realize this is just to setup the next 20% rally on the "unexpected" QEi+1 announcement don't you? "BUY BUY BUY"
The blow off top occured today at 10:25am EST.
Trade accordingly.
Thats the trade time for my SSO weekly puts. Probably need to be getting out about right now or about 5 minutes ago. LOL.
probably a small sell off to 15,000 then back to tha Mooooon!
MOAR is better than less because if stuff is not less... if there's MOAR less stuff then you might, you might want to have some MOAR and your Fed just don't let you because there's only a little.
We want MOAR. We want MOAR. Like, you really like it. You want MOAR.
-David Tepper explaining QE
Rude. You are insulting that little girl by associating her with TEPPPPPPPPer, she is way smarter than him.
Upvote though, made me laugh.
I can't wait to see what European bond yields do over the next few days. The POMO money the Fed. is pumping also finances European banks for PIIGS bond purchases.
prop job going on in the ES of course. Anyone who doesn't think Bernanke's 'tapering' plan doesn't also include full control over the ES is crazy. Major support levels will only be broken 'gently' if at all.
Economy and markets entering a cross-roads: Fed policy has crushed the real economy but reflated paper, along with fixed costs of living/working/doing business.
What to do? Let a deflationary spiral set in? Or keep inflating away?
I think we know what the inevitable answer is.
The real risk is pouring liquid gasoline on a biflationary fire. Currency is in peril
"Let a deflationary spiral set in? " - Please, no currency has ever been killed by deflation. With 7+ billion people all competing for a better standard of living and a fixed amount of energy available for maintaining that standard of living, there is plenty of demand. Show me the deflation in diesel fuel over the last 5, 10, or 20 years motherfucker.
Bernank was looking Extra smug and arrogant this am. I saw his face and quickly turned it off.
"Extra Smug" - that's the name of his new pharmaceutical cocktail.
Guy in my office takes that.
3:30pm ramp to GREEEEEEEEENNNNNNNNNNN!
Betcha.
Good call. 1530=today's low.
ready to the ramp up ?
Watching the Vix.. not much happening there. Needs to get movin up. I hate this market.
A few concerns about IE eh? I remember what happened the last time someone at this FR outfit alluded to over buoyancy...anyway, I'd prefer to believe people hearing the now tiresome meme of how fragile the 'recovery' is (despite the massive green poultice that has been applied, layer upon layer to the sucking chest wound formerly known as the economy) have finally concluded that Bernanke & Co is just plain flat out incompetent.
BTFD.
The post Bernank world is going to be rough. When he leaves it will all be blamed on him. Janet Yellin will be bag holder in waiting.