Post-FOMC Minutes Update: Market As Confused As Fed (But Fades Rally)

Tyler Durden's picture

UPDATE: All Change; now the knee-jerk rally in bonds and stocks is fading rapidly (and the USD is bid)


It seems the markets are as confused as the Fed members. The initial knee-jerk bid for bonds, stocks, and gold was retraced soon after; only to be ignored for another push higher as we post. Interestingly FX markets are 'less' undecided - it is taper-off as the USD is being offered everywhere with little retrace. As the Russell 2000 hits an all-time intrday high, equities still feel unstable (and VIX dropped to 14.06%).


Taper Off...14:18ET



To Taper On...14:30ET - Scratch all that - market re-retracing gains now... lol


It seems the "if confused buy" meme may just hit a wall today?


Charts: Bloomberg

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TruthInSunshine's picture

Interest rates, the unstoppable force of real markets that the true supply/demand curve will always ultimately control, and that many naively presumed Bernank could keep the lid on for all of QEternity, meet the Bearded Clam.

*With faithful, competent (/sarc) allies like Kuroda & Draghi (/sarc2), noone, least of all The Bernank, could've modeled for it or otherwise have seen it (a massive tsunami) coming.

flacon's picture

A rise in market price is bearish for the markets. 

AllThatGlitters's picture

Gold and silver gave up their gains:

However, is the game over? I thought I read that bond purchases will continue until employment rises? Which means despite the noise from "half" the members, bond purchases / QE will continue, period.

Winston Churchill's picture

Of course its going to continue thru' QE99 as Faber like to say.

The Bernanke is merely trying to talk the market into

going sideways.Trouble is the bubble is already blown.

Bubbles don't deflate except with violence,no blow  tube.

underman's picture

The meltup cannot be denied.

davinci7_gis's picture

"For the next three months we may or may not be in a up or down trend in the markets"

slaughterer's picture


fonzannoon's picture

He might as well go for it. If he tried to talk rates down he ends up looking like a total clueless asshole. May as well roll the dice.

reload's picture

And, as you said the other day, make it at least sound as if his money printing fest has worked, as if he has fixed the economy!

I think Mr Slaughterer is going to be right (again)

NoDebt's picture

Why is it I think moar "transparency" is not gonna get the job done here?  He should just shut up and run his little monetary schemes.  But he won't.  Loves to hear himself talk too much.


Its Only Rock N Roll's picture

The ONLY way the Fed manipulates rates back down at this point is to not only taper but stop QE and start talking about UNWINDING the balance sheet. 

Which he may try.

Never underestimate the hubris and arrogance of a central banker and their belief that they can control all outcomes. 

BB doesn't want what is happeneing right now. 

Bonds are going to puke once again.


Bohm Squad's picture

"The ONLY way the Fed manipulates rates back up..."

Fixed it for you.

Its Only Rock N Roll's picture

nope, I had it right the first time

maskone909's picture

Like i always tell my wife: hunny its time to jam out with your clam out.
At that point im usually hangin out with my wang out.

A side note, clams are delicious. Wait what about bernak...

disabledvet's picture

hard to beat twinkle toes still, here the Loius Armstrong version with Ella Fitzgerald: c'mon're getting stale here. you need to start picking up your game.

Divided States of America's picture

Yeah well 'Fed minutes time' is the breeding ground for lots of BS headlines to pop up so these predatory HFT algos are like those fuckin sentinels in the movie Matrix swarming about trying to rape everyones asses the second they activate from 'noise' coming out of the newswire.

Dollar Bill Hiccup's picture


Many, several, some, few. My kid has a Sesame Street book covering these.

There is Bernanke, and then there is Dudley. Everyone else is color. Everyone else is on Sesame Street.

All the explanations are color as well. It's not about unemployment, it's about bank balance sheets.

And bond markets to monetize US Debt. Less debt, less monetization. Period.

Every beginning has an end within it. Taper begins in September.

NoDebt's picture

"bond markets to monetize US Debt. Less debt, less monetization. Period."

Don't worry.  They'll make more.

Nid's picture

The Bershanker should face racketeering charges for creating this abomination. 

HowardBeale's picture

Let's invoke Fed theory: Hang Bernanke first, then try him.

McMolotov's picture

Gotta get this thing under control, Ben. The market is all that matters at this point. For whatever reason, Americans have been conditioned to believe the market represents the wider economy, so if the market is up, the economy must be improving. If they don't see the improvement in their own lives, they're simply the exception that proves the rule. They mustn't believe their lying eyes.

Never mind the fact that 53% don't even have a 401(k). Never mind the fact that the wealthiest 10 percent own about 85 percent of all outstanding stocks, as well as 85 percent of all financial securities and 90 percent of all business assets. If the market is up and the average person sees no benefit whatsoever, he or she just isn't looking hard enough.

The way it works is that the economy may, in reality, be a giant turd for most Americans, but the market will be used as lipstick to pretty it up. And if people start to complain about the shitty smell, a splash of Eau de War should be enough to distract them from the stink.

fonzannoon's picture

" Never mind the fact that the wealthiest 10 percent own about 85 percent of all outstanding stocks, as well as 85 percent of all financial securities and 90 percent of all business assets"

So we still have another 10 - 15% to go.

TruthInSunshine's picture

AKA the brilliant piece of fail-tacular macroeconomic policy that is:

 Ben S. Bernanke's 'Virtuous Circle'

McMolotov's picture

That seems to be the plan. So where's the anger? How can people still be so passive as they and their children get sold into debt slavery?

I'm more convinced than ever that I'll shit gold before most people wake the hell up. Would that be considered a silver (err... gold) lining?

RockyRacoon's picture

You should get on the same bus I'm riding:  Don't worry about what the so-called sheeple do.  That's their business.  They are not needed for riot fodder yet anyhow.  The Fed, Congress, Executive Branch, and SCOTUS will do all that is needed to fold the economic tent.  Then you can worry about the rabble which you seem so concerned about coming after your stuff.  Stock up with essentials and hold the fort.  Worrying about stuff that you have no control over will just give you ulcers.

Dollar Bill Hiccup's picture

Whoops. If it ain't nailed down ...

slaughterer's picture

Geisler signing off on WTI margin hike announcement right NOW!

NoDebt's picture

Anything in there about "market participants must be prepared to take physical delivery?"  No?  Shucks again.

JJ McApe's picture

in this sad reality - where insanity is reality - markets are only following the fed, aka cheap money. fundamentals are not relevant anymore.

the illusion of free markets is as big as the illusion of freedom in this society itself.

there was no recovery, markets died in 2008/2009.


cossack55's picture

And Liberty died off completely in 1963

Peter K's picture

Someone is trying to push the USD lower, but EM aren't buying it. EUR/PLN is a good tell. It's on its weekly highs. :)

orangegeek's picture

What a fucked up shit show.

1929agin's picture

nose high attitude by those buying equities, (commodities) airpspeed decreasing rapidly,( Oil ) to go, Central Banks, know stickshaker,stall warning coming on, bonds/yields flashing red

Eject eject eject




venturen's picture

But where will the market manipulating money come from? Muppets?

firstdivision's picture

USO almost caught up to SPY.  Need a bit more on WTI to hit it.

virgilcaine's picture

U now may Proceed to short the pig.

sphindog's picture

If the FED is "worried" and they are "in control of the situation," how am I supposed to feel?

buzzsaw99's picture

confused because the algos look to the fed for direction and the fed looks to the algos for direction

sphindog's picture

The answer to all problems...why doens't the FED just buy up all available shares of all SP 500 companies? Everyone will feel great...except half the posters on this blog who either have out of the money puts or 3x bear positions!

buzzsaw99's picture

do not mock the fazmobile. bad juju.

NoDebt's picture

Patience.  You are young.  You will live to see that day.

sphindog's picture

I honestly think I'm watching it. Who else would be stupid enough to buy equities when the guys running the show are worried about how their own plan is being implemented? Today does it for far as I'm concerned, the Fed is propping this equity market up.

The only way I'll be convinced otherwise is if rates drop, or the market drops...can't have it both ways, Ben. Keep buying those stocks!

HowardBeale's picture

That would eliminate the Pension underfunded-ness, as then they would be 100% underfunded, owning nothing; and that is the problem with these artificial prices: the pensions are forced to overpay and further increase the underfunding.

Bernanke IS THE DESTROYER, killing the middle class in so many ways.

RockyRacoon's picture

True, true.  I'm reminded of all the babble about whether there will be a bail-in to fix some of this mess.  Don't look now but that happened years ago.  When the Fed began taking the savers interest on their money and giving it to the banks -- that was a stealth bail-in.  The next one will be obvious since skimming interest off savings won't be enough.

Bohm Squad's picture

Looks like all the FX markets also retraced to pre-announcement levels...

1929agin's picture

santelli strong, bond yields alarming

taper this