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FOMC Minutes Spark Un-Taper Unwind

Tyler Durden's picture




 

Stocks are confused. The FOMC Minutes, which clarified that a) taper is on (no matter what almost), and b) forward guidance has been replaced by some fluffy words; have sent the USD higher, bond yields higher, and precious metals lower in 'classic' un-taper unwind mode. Stocks are holding (for now) as the USD strength (and implicit JPY weakness) is supporting US equities via the idiocy of the carry trade. VIX remains well bid and credit markets are blowing wider.

 

 

And stocks are confused as USD strength is being confused with JPY carry exuberance and holding stocks up here at VWAP...

 

Credit markets are not happy...

 

Charts: Bloomberg

 

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Wed, 02/19/2014 - 15:45 | 4453844 skwid vacuous
skwid vacuous's picture

Fuck the Fed

Wed, 02/19/2014 - 16:17 | 4453996 Headbanger
Headbanger's picture

Nope.  The Fed is saying fuck us now cause they've reached the end of their ability to prop up this fuctarded banana republic any more!

I've been saying for months now the Big Banks who OWN the Federal Reserve ( yes OWN it you moe rons!) see Obozo lost all his political power so there's no reason to prop up his sorry ass now.

It's all over you mooks!

Wed, 02/19/2014 - 16:19 | 4454010 Levadiakos
Levadiakos's picture

Our only real concern is for the safety of Jamie's bonus.

Wed, 02/19/2014 - 16:20 | 4454016 Headbanger
Headbanger's picture

He's gone before ya know it soon!

Wed, 02/19/2014 - 16:42 | 4454108 negative rates
negative rates's picture

Now we can't even get credit to maintaine the stuff we built in the past. 

Wed, 02/19/2014 - 15:46 | 4453850 johnQpublic
johnQpublic's picture

http://www.youtube.com/watch?v=M2scxJNXjMI

 

threadjack

the day obamacare died parody song

Wed, 02/19/2014 - 15:47 | 4453854 Obchelli
Obchelli's picture

Hey Hilthy... What takes you so long to chew report for us?

I thought you could analyze 125923 page book in 20 seconds... No?

Wed, 02/19/2014 - 15:49 | 4453865 lasvegaspersona
lasvegaspersona's picture

I view the fed as frantically pulling levers and pushing buttons in the derivatives market so that the financial markets appear calm. I expect they will continue to do this until it no longer works. I think it will be very interesting when that day comes.

The do seem to have some talent in the 'pulling & pushing' area though.

Wed, 02/19/2014 - 15:51 | 4453872 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

So was that "it" for the recent gold run? It's been languishing ever since Monday night. 

Wed, 02/19/2014 - 16:06 | 4453937 wiseindian
wiseindian's picture

Yeah I think so because honestly nothing that impacts phys gold has changed since the December low of $1180 something. What has really changed to support a sustained rise?

Chinese New Year was a blip in terms of purchases. Indian buying has fallen off the radar. Taper is slated to continue on as per today's FOMC minutes. Economy is in the crapper. Unemployment is shit. Housing starts are horrible. Retail spending is down. All of these have continued to remain the same since November when the first bad numbers for retail came out. Nothing has changed since then. What exactly HAS changed to support the rise in the past month? Just the USD falling? That's not fundamental enough to change the trend is it? 

I'm no expert so I'm asking. I could be wrong.

 

Wed, 02/19/2014 - 16:10 | 4453959 NOTaREALmerican
NOTaREALmerican's picture

The gold worshipers keep trying to ignore what their deity is telling them.

Glod is predicting deflation.     But his followers are too obsessed with inflation to hear.  

Wed, 02/19/2014 - 17:20 | 4454294 greatbeard
greatbeard's picture

>> Glod is predicting deflation

So that's what all those massive, instantaneous dumps in the slow hours were all about?  Somebody didn't care how much they lost on the trade, they were only trying to let us little people know deflation was about.  That was real swell of them.

Wed, 02/19/2014 - 19:40 | 4454854 forwardho
forwardho's picture

What is the price of the loss of reserve currency status?

Do you understand? The fantasy must continue at any cost.

The cost of controling the gold market is a pittance compared to the ability to print (and use) multiple trillions of worthless fiat.

Wed, 02/19/2014 - 17:34 | 4454358 Ignatius
Ignatius's picture

This is why I sold Glod and bought gold.

Glad to be ought of my glod position. Phew.  Thanks.

Wed, 02/19/2014 - 17:40 | 4454386 akak
akak's picture

I am SO glad that I got rid of all that damned useless glod years ago!

I'm much happier holding sliver.

(Just wish there was some practical way to invest in physical nit and deal.)

Wed, 02/19/2014 - 16:31 | 4454062 eclectic syncretist
eclectic syncretist's picture

In a technical sense gold should make some sort of attempt to return to $1280, which should now be support.  If it can't get back down to ~1280, that would be very bullish.

Wed, 02/19/2014 - 16:35 | 4454082 lasvegaspersona
lasvegaspersona's picture

The only reliable gold indicator worth following is the amount of physical left in the system.

http://www.spdrgoldshares.com/assets/dynamic/GLD/GLD_US_archive_EN.csv

As Rob Kirby has said 'this ends when China doesn't get its gold'.

The hoard at GLD is now down to 800 tons. It was 1350 a year ago and has lost inventory every single month since then. This collection of bricks dwarfs the Comex. It is the final weapon against the collapse of the dollar as a reserve. If the big guys can not get gold when they demand it....well they had better or oil won't ship and China won't produce. All producers will and have always, demanded real stuff for their real stuff. Sure they accept currency if they can spend it. Any excess over what they can spend and believe it.....they are doing you a favor. It does them little good to be paid interest on treasuries if they do not believe they will ever be able to spend those treasuries. Ultimately they must have a savings vehicle that will endure. On a long time horizon paper promises are never kept. Better for them and for us to save in the way that has worked for 5000 years, gold. They know this and so do we.

Watch the GLD inventory. When it is gone (or maybe sooner) Rob Kirby will start looking pretty smart.

Wed, 02/19/2014 - 15:53 | 4453884 PontifexMaximus
PontifexMaximus's picture

Nothing to worry, markets will do their best, sic dixit bernankus

Wed, 02/19/2014 - 15:56 | 4453899 YouAreBliss
YouAreBliss's picture

Young Ivy league graduates are avoiding working for Wall St like the plague! 

1 in 6 are going to work for "Teach For America"

A NEW AWAKENING!

Watch this interview on CNBC - the zombie anchors are in horror! The old guys go on the full frontal attack -the younger anchors are listening though.

"After the Occupy Movement - "I never really thought of my job in moral terms before" said a young Goldman trader."

Who said the Occupy Movement had no effect? That's why it was crushed.
Wall St has been exposed - has lost all it's cache - and appeal to the younger generations.

"There is one group of graduates that are still highly motivated to work on Wall St - those that graduate with massive student debt." Well that says it all - they HAVE to sell their souls to the devil.

His book is #12 on Amazon's best sellers list.

http://video.cnbc.com/gallery/?video=3000246442

Wed, 02/19/2014 - 16:05 | 4453932 NOTaREALmerican
NOTaREALmerican's picture

I'm dubious.    The number of sociopaths in society shouldn't have changed.   

There will always be a job for the sociopaths, somewhere.   If they aren't going to Wall Street, politics, advertising, sales, or religion where are they going?

I'd be more worried about not knowing where they are. 

Wed, 02/19/2014 - 16:50 | 4454145 css1971
css1971's picture

As well as the hard line sociopaths there will be those who follow them, as well as the borderline cases.

Then there's the question; nature or nurture?

Wed, 02/19/2014 - 19:28 | 4454815 forwardho
forwardho's picture

They have found a nice little niche market in the rapid reduction of lifespans trade.

Wed, 02/19/2014 - 16:04 | 4453929 Caracalla
Caracalla's picture

Looks like the bulls drew a line in the sand at S&P 1836 and it held.  Given this strength even with a full taper, it's hard to see how stocks don't rise from here.  BTFD

Wed, 02/19/2014 - 16:15 | 4453981 Caracalla
Caracalla's picture

Oops!  VIX bid, credit and gold slammed.  Support failed to hold.  Ought to be an interesting last 45 minutes to see if the bulls can regain 1836.

Wed, 02/19/2014 - 16:51 | 4454155 Caracalla
Caracalla's picture

Runt-roh!

Wed, 02/19/2014 - 17:02 | 4454212 Caracalla
Caracalla's picture

S&P broke down without closing above January's high.  Looks like a H & S pattern on the S&P to me.  What say everyone?  Is it time to short this mother?

Wed, 02/19/2014 - 16:06 | 4453938 NOTaREALmerican
NOTaREALmerican's picture

Stocks go up until the black swan poops on the party.

Wed, 02/19/2014 - 16:09 | 4453952 Spungo
Spungo's picture

I don't understand where the money is going.
-yields going up means bonds are down
-stocks are down
-gold is down

I would expect at least one of them to benefit from this.

Wed, 02/19/2014 - 16:10 | 4453960 FieldingMellish
FieldingMellish's picture

Cash.

Wed, 02/19/2014 - 16:12 | 4453969 NOTaREALmerican
NOTaREALmerican's picture

High end real-estate in Tuscany?   Private jets?    

Wed, 02/19/2014 - 16:28 | 4454049 eclectic syncretist
eclectic syncretist's picture

When too many are overextended on margin everything can definitely go down at once, and fast.  That's when you really want to be the smart one who saved some dry powder for just such an opportunity.

 

Wed, 02/19/2014 - 16:46 | 4454127 css1971
css1971's picture

Didn't you watch "The Matrix"?

  • "Only try to realise the truth."
  • "What truth?"
  • "There is no money."

http://www.youtube.com/watch?v=jqvKjsIxT_8

 

Wed, 02/19/2014 - 16:10 | 4453956 FieldingMellish
FieldingMellish's picture

Monkey hammer the gold while they can. 

Wed, 02/19/2014 - 16:10 | 4453961 dead hobo
dead hobo's picture

30 yr rates ... jump my babies, jump. Please pass 4%. I want to buy into a lt bond fund, collect a little safe interest, reap big cap gains when the flight to safety returns. Being an old bum, I want safe(ish) yield and want to finally buy into a safe(ish) LT non-govt bond fund and retire with income. This last part will happen with the liquidity crisis to come when europe and japan give in. Expecting a big temp dip in prices when panic ensues.

Wed, 02/19/2014 - 16:19 | 4454012 Frank N. Beans
Frank N. Beans's picture

Credit is not happy?

That's called CRappy.

 

Wed, 02/19/2014 - 16:22 | 4454026 TaperProof
TaperProof's picture

"no matter what?"   hahahah.  We shall see

Wed, 02/19/2014 - 16:28 | 4454048 Tenshin Headache
Tenshin Headache's picture

It only took them 20 years to start talking seriously about taking away the punch bowl.

Wed, 02/19/2014 - 16:39 | 4454096 marginnayan
marginnayan's picture

WS Mafia Cartel, Bye Bye Un-Taper. Now keep buying that QE pig through robotic Algos. Chuckles.

Wed, 02/19/2014 - 16:42 | 4454105 Spungo
Spungo's picture

"In a technical sense"

Please kill yourself

Wed, 02/19/2014 - 16:43 | 4454111 Obama_4_Dictator
Obama_4_Dictator's picture

Hulk Smash Silver Prices....

Wed, 02/19/2014 - 16:45 | 4454118 Ulterior
Ulterior's picture

so, the new moto is fck the gold? what went up except bonds?

Wed, 02/19/2014 - 16:55 | 4454181 TheRideNeverEnds
TheRideNeverEnds's picture

Buy the dip, I am sure CNBC will tell us when it is time to sell them out. 

Wed, 02/19/2014 - 17:31 | 4454349 Dimons jock
Dimons jock's picture

Good thing Sheila's getting back into the action ...

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