Mission (Almost) Accomplished: S&P 500 Nears Bernanke's 1,800 Year-End Target

Tyler Durden's picture

As we "forecast" this morning (and a month ago - if our extrapolation of the Fed's balance sheet is correct - i.e. no Taper - that the S&P 500 Fed L-A-B-I-A should be around 1800 by year-end), the Fed can be proud that they managed (remember it "costs" $3.25bn in POMO to create 1 S&P 500 point) to get the key US equity index - the S&P 500 - near the critical 1,800 level...

 

 

Mission (Almost) Accomplished...

 

Cue Tom Lee... need to re-raise that year-end target again stat... (of course there is always the real "Bernanke" plan)

The S&P is now its richest relative to LABIA since early August...

 

The last four weeks have seen the S&P 500 rise 4%, IG credit spreads drop 1bps, and HY credit spreads +6bps (as supply overwhelms a saturated credit market)...

 

Off the debt-ceiling lows... indices are unstoppable... (Trannies +12.5%!)

 

With every dip in any sector bid to infinity... (Discretionary and Industrials +11%!!)

 

Gold made it back to unchanged on the week thanks the Yellenomics...

 

Treasuries rallied 5-8bps on the week...

 

FX markets saw USD weakness all day... ending the week -0.45% (and -0.9% against the EUR)...

 

Investors appeared to protecting some gains during day (and it was OPEX) but VIX was levered into the close as they tried to tag 1800..

 

Charts: Bloomberg

 

Bonus Chart: It seems the bubble in "bubble" speak has been a lot bubblier in the past...

 

Bonus Bonus Chart: This is what a bubble looks like...

 

 

Bonus Bonus Chart: You ain't seen nothing yet... NKY is up 1480 points in 6 days...