Post-FOMC - Bonds, Gold, & Stocks Bid; And 5th Hindenburg Omen Appears

Tyler Durden's picture

UPDATE: S&P 500 crosses 1,800 (35-point swing off lows - which perfectly hit the 50DMA once again); USD starting to weaken along with bonds

 

Well that escalated quickly... Stocks cracked lower instantly on the taper news then soared above recent highs ripping through the order book... but are fading back now as we prepare for Bernanke's last press conference. VIX was smashed lower (from over 16.6% to 14.1%). Gold and stocks spiked up pre-FOMC in an interesting move. Bonds are rallying as rumors of BoJ buying 5Y hit the market and the USD (despite considerable vol) is back to unch.

 

The initial weakness in stocks and bond and gold has faded

 

and the 5th Hindenburg Omen has appeared...

 

VIX is being monkey-hammered lower...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Headbanger's picture

Burn the freaking thing down already!

Charles Nelson Reilly's picture

wait...wait...wait!!! I think I may want to buy 4 shares of GOOG before we do that.

PRO.223's picture

I don't buy this surge in, well evrything, it's an attemp at herding people to think this is positive by the big banks and dotgov etc.. They're fearful of a huge negative reaction, but I see a huge drop by the end of December when this soaks in.

DoChenRollingBearing's picture

That Hindenberg Omen does not seem to be working very well now.  But, a time will arrive very soon to sell some more stocks, IMHO.

Gold is barely up, and nowhere near its highs.

Ruffcut's picture

Well with "berg" on the end of it, can't be too reliable it seems.

But it isn't blimp either. So again fifth, sixth or tenth, who gives a fuck.

gmrpeabody's picture

This is nothing but smoke and mirrors...

As stated above, they are making us believe that the market is ready to end QE. If that was so, I think gold would be telling us in a big way. Gold isn't buying it, nor am I. Somebody's got to buy our governments shit, and it ain't gonna be the Chinese. They can try to disguise this any way they want, but QE isn't ending any time soon. They will merely change the name and/or definition and say QE is over.

Bite me...

 

garypaul's picture

I think you're right. See Jim Rickards and "reverse repo".

Exponere Mendaces's picture

Nice shitty market you guys have here. Damn, makes you miss the ones that go DOWN as well as up. Well, I don't miss it, since I trade something that isn't stuffed up the ass with Fed money, but hey, I guess if you're not clued in, you will never know...

Kaiser Sousa's picture

FUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUCK

YOU BERNANKE........

cassotto's picture

why? you short? i love the FOMC, they made trading so much easier: )

bernanke is a smart man

NotApplicable's picture

Well, it's easy right up to the millisecond it isn't.

Good luck!

SunRise's picture

because retirees are broke from it,

because children's futures are broke from it,

because no-one has a right to choose your currency for you and force you to use it

being on the right side of the trade is not a reason - Nazi's were on the right side of the trade.

JP McManus's picture

Still growing the balance sheet = still easing?

 

The FOMC also directed the Desk to maintain its existing policies of reinvesting principal payments from the Federal Reserve’s holdings of agency debt and agency MBS in agency MBS and of rolling over maturing Treasury securities at auction.

fonzannoon's picture

A buddy of mine just texted me regarding this bullshit taper...."this is like a girl saying she won't have sex anymore but will still give bj's and take it in the butt"

Sometimes it's best to express these things in other terms.

Dr. Engali's picture

Damn, I've had all the wrong girl friends.

disabledvet's picture

women fall in love all the time. for some reason men don't understand that.

What you talkin about Willis's picture

In this analogy is she still letting you lick her Vag? Or is it that she gets the face sitting option at her discretion?  Inquiring minds...

BringOnTheAsteroid's picture

Do you think licking genitals is a common practice among advanced civilisations in the universe. It really is quite comical.

Rathmullan's picture

From the market's warped casino floor gaming mentality perspective the fomc decision is bullish as now: 1) incremental monthly bond purchase adjustments will be no more than $10 billion and; 2) I highly suspect that the tapers occur no more frequently than the 8th and 4th meeting of each year putting the fed at a neutral policy a full 3 to 3.5 years from now. The fmoc are the ultimate shills for wall street but something will break and break hard well before then.

Charles Nelson Reilly's picture

honestly, somone pls fucking explain why the market is up 200 pts?!?

adr's picture

Because we live in the age of bullshit.

Seriously in a few thousand years someone is going to be digging and hit our layer of earth, then exclaim "what the fuck is that smell, stop digging."

Carpenter1's picture

It's going up because all big miney knows the whole taper BS is just that BS. FED buys far more than 85bn a month, and will buy far more than 75bn a month going forward. Remember, it's all lies, and now this supports their "The economy is improving meme" that they desperately need to bolster.

 

So, through the magic of lies and disinfo, they have it both ways, and the market knows it.

JailBank's picture

Hey retails investors step right up. See the FED tapered and the markets went up. Go ahead and bring us your money we'll galdly sell you our shares of fairly valued stocks. What can go wrong? Now is the time to get in.

 

Seems to me the last big pudh to get the retail investors in so the big boys can get out.

SheepDog-One's picture

Charles Nelson- I bet Bernank was squirreling away extra POMO to throw all in today as smoke screen. 

dcj98gst's picture

FED is blowing its whole 40 billion load all in one day just to stabilize the bond market.

Headbanger's picture

A final going away gift from the Bernanke maybe??

eclectic syncretist's picture

The day isn't over yet.  Fourth trip over 1800 for the S&P and we got an hour to see if it holds. 

Al Huxley's picture

This should put the nail in the 'Hindenburg Omen' coffin, then.

Matt1973's picture

More nonsense...I might go visit the oil drum, better record on accuracy

Fiat Burner's picture

Stocks moving into blow-off phase in my opinion.  Any news = buy buy buy.

Its Only Rock N Roll's picture

correction - continuing their blowoff phase - has been going on for quite some time

Al Huxley's picture

I guess this will convince the doubters that the FED's in a corner then.  I mean, if the market can ROCKET higher on news of a taper, that must mean that both the economy is fantastic (don't let all those fucking beggars fool you) and that the FED is free to stop QE entirely and wind down its balance sheet.  Fucking fantastic - time to go ultra long Facebook January 100 calls.

fonzannoon's picture

at least gold is up a buck....

Al Huxley's picture

Yes, it looks rock solid - I just hope nobody fucks with it going into Comex options expiry and delivery notice dates.

Al Huxley's picture

So glad I shorted the miners into that little rally.

Al Huxley's picture

Hey Fonz, I'm finally seeing green in my gold stocks portfolio!

Chief Falling Knife's picture

Is this the 'King Dollar' move?  Fed is now only scheduled to print $900bln this year, so that's a minimal enough number for everyone to buy everything American?  HAH!!

At this point I'm wondering how many shares of GOOG the BOJ owns.

Mi Naem's picture

ANOTHER Hindenburg?!?  They seem to be losing value, perhaps we are producing too many of them. 

"I'll gladly pay you Tuesday for a Hindenburger today"

doggis's picture

THE OPTICS OF OMNIPOTENCE.

 

DID YOU CATCH THAT - SQUEEZE THROUGH THE MARKET, AND BEHOLD THE OPTICS OF THE OMNIPOTENT FED!

KINDA MAKES ONE FEELS HOT AND MOIST ALL OVER!

DebtSlaveZombie's picture

Interesting.  Gold/Silver almost unchanged and the markets are up 1%.  This is an odd reaction to a very surprising decision.  Why didnt they taper in September then?  Makes very little sense.  Unless the FED wanted to make a change then have Yellen change it back in 6 months.  I'm also surprised how the bond market is taking the news, almost unchanged.  Odd day and reaction.

Traianus Augustus's picture

I'll say it again....ITS ALL JUST A BUNCH OF BLS!!!

 

TheRideNeverEnds's picture
Hindenburg Omens are buy signals, look at every single one in history, if you had just bought and hold them then you would be up money.  

 

We have confirmed generational lows with a tripple top breakout in the first half of the year, if you have not been buying the market with both hands since we broke through the 1500 area you are an idiot and are going to lose all your money if you haven't already.

 

 

The market is severely undervalued when adjusted for inflation. 

pragmatic hobo's picture

looks like algos got confused ... dollar up, yen down, market up or is it down?

SheepDog-One's picture

So Hindenberg Omens are actually buy signals. Roger that.

Anyway, seems the trick is these 35 point daily S&P pumps are to keep the 50 DMA moving up at a 5 point a day avg., that's all.

GrinandBearit's picture

I say we start a new omen... the "Titantic" omen.