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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...

 


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Wed, 12/18/2013 - 15:32 | Link to Comment Headbanger
Headbanger's picture

Burn the freaking thing down already!

Wed, 12/18/2013 - 15:36 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

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

Wed, 12/18/2013 - 15:43 | Link to Comment PRO.223
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.

Wed, 12/18/2013 - 15:53 | Link to Comment DoChenRollingBearing
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.

Wed, 12/18/2013 - 16:17 | Link to Comment Ruffcut
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.

Wed, 12/18/2013 - 17:44 | Link to Comment gmrpeabody
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...

 

Wed, 12/18/2013 - 22:26 | Link to Comment garypaul
garypaul's picture

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

Wed, 12/18/2013 - 20:54 | Link to Comment Exponere Mendaces
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...

Wed, 12/18/2013 - 15:35 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

FUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUCK

YOU BERNANKE........

Wed, 12/18/2013 - 16:27 | Link to Comment cassotto
cassotto's picture

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

bernanke is a smart man

Wed, 12/18/2013 - 16:38 | Link to Comment NotApplicable
NotApplicable's picture

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

Good luck!

Wed, 12/18/2013 - 16:46 | Link to Comment SunRise
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.

Wed, 12/18/2013 - 15:34 | Link to Comment JP McManus
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.

Wed, 12/18/2013 - 15:37 | Link to Comment fonzannoon
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.

Wed, 12/18/2013 - 15:38 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

now i get it....

Wed, 12/18/2013 - 15:53 | Link to Comment yabyum
yabyum's picture

'Splains it all.

Wed, 12/18/2013 - 18:29 | Link to Comment Surly Bear
Surly Bear's picture

She have a sister?

Wed, 12/18/2013 - 15:38 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Wed, 12/18/2013 - 16:48 | Link to Comment disabledvet
disabledvet's picture

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

Wed, 12/18/2013 - 16:29 | Link to Comment What you talkin...
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...

Wed, 12/18/2013 - 18:01 | Link to Comment BringOnTheAsteroid
BringOnTheAsteroid's picture

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

Wed, 12/18/2013 - 15:39 | Link to Comment Rathmullan
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.

Wed, 12/18/2013 - 15:39 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

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

Wed, 12/18/2013 - 15:44 | Link to Comment adr
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."

Wed, 12/18/2013 - 15:48 | Link to Comment Carpenter1
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.

Wed, 12/18/2013 - 16:19 | Link to Comment JailBank
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.

Wed, 12/18/2013 - 16:38 | Link to Comment SheepDog-One
SheepDog-One's picture

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

Wed, 12/18/2013 - 15:42 | Link to Comment dcj98gst
dcj98gst's picture

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

Wed, 12/18/2013 - 15:46 | Link to Comment Headbanger
Headbanger's picture

A final going away gift from the Bernanke maybe??

Wed, 12/18/2013 - 16:07 | Link to Comment eclectic syncretist
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. 

Wed, 12/18/2013 - 15:43 | Link to Comment Al Huxley
Al Huxley's picture

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

Wed, 12/18/2013 - 15:44 | Link to Comment Matt1973
Matt1973's picture

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

Wed, 12/18/2013 - 15:44 | Link to Comment Fiat Burner
Fiat Burner's picture

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

Wed, 12/18/2013 - 16:16 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

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

Wed, 12/18/2013 - 16:30 | Link to Comment Fiat Burner
Fiat Burner's picture

True.

Wed, 12/18/2013 - 15:46 | Link to Comment Al Huxley
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.

Wed, 12/18/2013 - 15:45 | Link to Comment fonzannoon
fonzannoon's picture

at least gold is up a buck....

Wed, 12/18/2013 - 15:53 | Link to Comment Al Huxley
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.

Wed, 12/18/2013 - 16:53 | Link to Comment disabledvet
Wed, 12/18/2013 - 17:01 | Link to Comment Al Huxley
Al Huxley's picture

So glad I shorted the miners into that little rally.

Wed, 12/18/2013 - 17:39 | Link to Comment Al Huxley
Al Huxley's picture

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

Wed, 12/18/2013 - 16:08 | Link to Comment Chief Falling Knife
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.

Wed, 12/18/2013 - 16:02 | Link to Comment Mi Naem
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"

Wed, 12/18/2013 - 16:04 | Link to Comment doggis
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!

Wed, 12/18/2013 - 16:16 | Link to Comment DebtSlaveZombie
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.

Wed, 12/18/2013 - 16:22 | Link to Comment Traianus Augustus
Traianus Augustus's picture

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

 

Wed, 12/18/2013 - 16:23 | Link to Comment TheRideNeverEnds
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. 

Wed, 12/18/2013 - 16:33 | Link to Comment pragmatic hobo
pragmatic hobo's picture

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

Wed, 12/18/2013 - 16:38 | Link to Comment SheepDog-One
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.

Wed, 12/18/2013 - 16:37 | Link to Comment GrinandBearit
GrinandBearit's picture

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

Wed, 12/18/2013 - 16:46 | Link to Comment thismarketisrigged
thismarketisrigged's picture

this fucking market will finish up 300 pts on the dow today, and then asia will rally like a fucking mother fucker, than all of europe will rally on this fucking bullshit.

 

this always fucking happens, every central banker and fed member needs to be fucking killed now. these guys have fucking ruined this fucking world.

Wed, 12/18/2013 - 17:00 | Link to Comment El Hosel
El Hosel's picture

How man HBO's does it take to screw up an ATH?

Wed, 12/18/2013 - 17:13 | Link to Comment DebtSlaveZombie
DebtSlaveZombie's picture

Or maybe ruined your world... but keep stackin'.  Seriously.  Keep stackin'.  At some point in the future you'll be right.  Just takes time... maybe a few decades.  But you'll be right.

Wed, 12/18/2013 - 17:14 | Link to Comment Justin Credible
Justin Credible's picture

5th HO?

HO HO HO HO HO!

 

That's what Santa says.

Wed, 12/18/2013 - 17:14 | Link to Comment squid427
squid427's picture

September they talk taper people scramble for the door. December they unexpectedly taper and markets rally, gold/silver basically unchanged and what is most peculiar to me is bond yields are down. What a world huh?

Wed, 12/18/2013 - 17:14 | Link to Comment MFLTucson
MFLTucson's picture

.  What the fuck kind of a sytem is it that places such a ridiculos amount of power in the hands of unelected, unaccountable people.

Wed, 12/18/2013 - 20:01 | Link to Comment logicalman
logicalman's picture

The kind of system preferred  by those unelected, unaccountable people.

Simple really

Decent people say 'I can't do this, it's obviously wrong'

Psychopaths don't give a fuck whether it's wrong or right, only if it benefits themselves.

Wed, 12/18/2013 - 17:25 | Link to Comment MichiganMilitiaMan
MichiganMilitiaMan's picture

I was hoping today that the S&P would move back above 1800 new while ZH reporting on another Hindenburg Omen, just so I could enjoy reading all of these post!

Wed, 12/18/2013 - 17:28 | Link to Comment wiseindian
wiseindian's picture

Well .. .at least gold is acting as was expected? Being slammed down.. now down $11 and likely taking it in the ass overnight as well. Whatever. More buying opportunity for those who actually care to hold any PM. 

Wed, 12/18/2013 - 17:54 | Link to Comment quasimodo
quasimodo's picture

"for those who actually care to hold any PM. "

Good point. Don't mind metals but sure am sick of the ass ramming every time the weather changes.

Wed, 12/18/2013 - 18:07 | Link to Comment XitSam
XitSam's picture

That's because you value PMs in a fiat currency. I value PMs in ounces.

Wed, 12/18/2013 - 20:01 | Link to Comment logicalman
logicalman's picture

What will the 'price' of PMs be when the dollar is worth nothing???

 

Thu, 12/19/2013 - 17:19 | Link to Comment XitSam
XitSam's picture

What other commodity or currency will you be purchasing or using?  Tell me that and I'll give my estimate.  Obviously, when the Federal Reserve Note is worth the paper it is printed on, it will not be in use as a currency.  Simple lessons for simple minds.

Wed, 12/18/2013 - 18:07 | Link to Comment Mugatu
Mugatu's picture

Why buy gold today when it will be on sale for less tomorrow (and next week).  Before gold can bottom, it has to level off - simple physics.  I have yet to see any leveling off on the monthly charts.

Wed, 12/18/2013 - 18:05 | Link to Comment XitSam
XitSam's picture

Double Schmindenberg

Wed, 12/18/2013 - 20:10 | Link to Comment GubbermintWorker
GubbermintWorker's picture

The FED also said that interest rates might have to stay at the current low level longer than expected. That's what caused the markets to surge! Spend, spend, spend!!!

Wed, 12/18/2013 - 20:38 | Link to Comment El Hosel
El Hosel's picture

 Trillions of dollars in debt and bad assets swept under the Federal Rug, ZIRP for 8 years. Market rigging and fraud taken to extreme, all the Banksters reinstated to full Royalty... Whats not to like?

Wed, 12/18/2013 - 20:41 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Fuck yeah! The Omen!!

 

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