Stocks And Bonds Disagree With "Reportedly Dovish" Statement, Dollar Spikes

Tyler Durden's picture


While the talking heads are desparate to maintain the myth that this statement is dovish, the fact is, the flow of free money from the Fed is slowing and confusion of the outlooks for growth (and more Fed member see rate hikes in 2015) means Yellen's dovishness is being questioned aggressively by the bond and stock markets. The S&P 500 fell 12 points. Treasuries are getting clubbed with major short-dated selling (and bear-flattening). The dollar is surging and gold is down modestly.


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Wed, 03/19/2014 - 14:21 | 4568675 thatthingcanfly
thatthingcanfly's picture

Gee, gold got smacked down? No way. Who could possibly have seen THAT coming?

Wed, 03/19/2014 - 14:23 | 4568689 fockewulf190
fockewulf190's picture

3 days in a row.  Expect China to load the slow boat.

Wed, 03/19/2014 - 14:29 | 4568720 Honey Badger
Honey Badger's picture

Gold, the anti-fiat, is down.  Treasuries, the ultimate fiat, are down.  Yes, a lot of confusion out there.

Wed, 03/19/2014 - 14:37 | 4568768 fockewulf190
fockewulf190's picture

Wonder what state of mind those Belgium peeps are in?  Boy do they love fiat.

Wed, 03/19/2014 - 14:54 | 4568878 nuclearsquid
nuclearsquid's picture

12 points! Beware of falling bankers.

Wed, 03/19/2014 - 15:02 | 4568923 Soul Glow
Soul Glow's picture

Everyone did ask them to jump.

Wed, 03/19/2014 - 14:28 | 4568679 TruthInSunshine
TruthInSunshine's picture

Stock < Flow bitchez

Never forget it. Ever.

Fed CAN NOT STOP TAPERING (ask Jeremy Stein why - the unwind of their existing 4.2 trillion balance sheet is already A CRISIS IN WAITING).

See ya' around.

Wed, 03/19/2014 - 14:32 | 4568729 Rip van Wrinkle
Rip van Wrinkle's picture

The Fed will never unwind. The crap they have on their balance sheet will be turned into zero coupon, undated bits of paper.


And as for the Fed raising rates? Not in my lifetime.

Wed, 03/19/2014 - 14:33 | 4568747 asteroids
asteroids's picture

Should the bond market insist (as the 5yr shows) for higher rates. Look out Japan. Boom! FED, soon thereafter. This can get scary fast.

Wed, 03/19/2014 - 14:56 | 4568888 asteroids
asteroids's picture

The FED has just doomed pension plans across the planet to implosion with ZIRP.

Wed, 03/19/2014 - 14:34 | 4568756 fockewulf190
fockewulf190's picture

Why not stop tapering when you have all those rich Belgiums buying hundreds of billions worth of T-Bills?  Soon the Portugese will get jelous and start buying billions themselves.  Now where is that sarc button...had it laying around here somewhere...

Wed, 03/19/2014 - 17:22 | 4569394 earleflorida
earleflorida's picture

~sooner rather than later the USS`FRB will have to port...

but, when that day comes... so far, far out at sea

with golden-rocks exchanged for a seafaring paper`ballast long-ago, the slightest of monetary whims will scissor its timbers to shivers... me thinks

this fractional'mast... this splinter'd balsa owed to a ole`paper`mache, and a bankrupt rudderless too

into the debt of a non-fictional atlantis,... where even utopian's gnash naught their teeth on the greatest ponzi'ian floatilla

darest a gnarled`knot be yarn'd... a fiat wagging the wavery sea-tale of a tidaless sea

where the gordian drown'd faustian captain `binji'man, now entangled in the occtopus red ink golden`sach tentacles

and his cabin boy `yellen mutiny... thars shoals on the star`board

anchored to the depression below, a squally eighteen-trillion fathoms below

the keynesian wetdream, felt once moar a fraudian`reality of mankinds despair

were it never told by a plato

milleniums,... algoes' ~ 



a little homour  :-))


Wed, 03/19/2014 - 14:22 | 4568680 El Vaquero
El Vaquero's picture

Stocks dropped?  BULLISH!

Wed, 03/19/2014 - 15:13 | 4568704 TruthInSunshine
TruthInSunshine's picture

+ China, bitchez (Minsky)

Is that Woody Allen speaking on streaming Bloomberg? Sounds EXACTLY like Woody Allen.

Wed, 03/19/2014 - 14:26 | 4568705 CrashisOptimistic
CrashisOptimistic's picture

More hand waving.  Stocks don't matter.  Gold don't matter.  Bonds don't matter.

Oil recrossed above $100 a while ago.

That matters.

Wed, 03/19/2014 - 14:26 | 4568706 Babaloo
Babaloo's picture

1,  Nobody who knows anything thinks this is dovish.

2.  "Gold is down modestly (?)"  Thanks for the laugh...

Wed, 03/19/2014 - 14:27 | 4568709 JustObserving
JustObserving's picture

Has there been a bigger Ponzi than the Fed in the history of this world?  

Stocks will be green by the end of this day. Forward.

Wed, 03/19/2014 - 14:27 | 4568711 Phat Stax
Phat Stax's picture

The first move post-Fed is usually wrong.  Unless the first move was actually a pre-first move, and the first move is up.

Wed, 03/19/2014 - 14:27 | 4568712 youngman
youngman's picture

Opposite of what Econ 101 taught me....strange...

Wed, 03/19/2014 - 14:31 | 4568733 RealityCheque
RealityCheque's picture

Wait. So you cant just print counterfeit money to make all your troubles go away??

Well, well. Seems I'm going to have to rethink my subscription.

Wed, 03/19/2014 - 14:33 | 4568753 buzzsaw99
buzzsaw99's picture

skynet has gone full retard

Wed, 03/19/2014 - 14:35 | 4568763 greatbeard
greatbeard's picture

Has there been a Fed announcement anytime in recent history where gold wasn't trashed?

Wed, 03/19/2014 - 14:35 | 4568764 Quinvarius
Quinvarius's picture

The event is over.  Fade everything.

Wed, 03/19/2014 - 14:38 | 4568779 pound the vix
pound the vix's picture

Belgium just lost a fortune on those new treasuries

Wed, 03/19/2014 - 14:44 | 4568813 fockewulf190
fockewulf190's picture

You think they really bought 200 billion worth?  Where is that deed to a certain bridge in Brooklyn I have for sale...

Wed, 03/19/2014 - 14:48 | 4568837 El Vaquero
El Vaquero's picture

I'll take that bridge.  In return, I'll pledge the Golden Gate Bridge as collateral. 

Wed, 03/19/2014 - 15:27 | 4569059 headhunt
headhunt's picture

you should sell derivatives based on that deal

Wed, 03/19/2014 - 15:38 | 4569131 El Vaquero
El Vaquero's picture

I will, but first I'm going to pull out mortgages on both bridges, then purchase some CDSs on the deals. 

Wed, 03/19/2014 - 16:31 | 4569354 headhunt
headhunt's picture

Put me down for a million Ukranian-Rubles

Wed, 03/19/2014 - 14:43 | 4568809 slightlyskeptical
slightlyskeptical's picture

First rate hike will occur on January 14th, 2015 if the Fed can actually manage to hold off that long, which I knid of doubt.  Could see a hike in the fall if geo political events get out of hand.

Wed, 03/19/2014 - 14:53 | 4568870 Panafrican Funk...
Panafrican Funktron Robot's picture

What could possibly go wrong?

Around August/September of 2011 was the last time there was a significant meta-market event.  

Wed, 03/19/2014 - 14:56 | 4568892 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Buy today's dip, tomorrow new highs.

Wed, 03/19/2014 - 15:20 | 4569021 SheepDog-One
SheepDog-One's picture

Show me your trade order for how much stawks you bought.

Wed, 03/19/2014 - 15:07 | 4568948 Roger Shermanator
Roger Shermanator's picture

Fed's policy is intrpreted as "easy" -> sell gold

Fed's policy is interpreted as "tightening" -> sell gold

Heads we win, Tails you lose.  Rinse and repeat.

Wed, 03/19/2014 - 15:19 | 4569011 SheepDog-One
SheepDog-One's picture

No one gives a shit about rates, it's a more free money or die world from here on out.

Wed, 03/19/2014 - 15:23 | 4569034 Spungo
Spungo's picture

Why did the yield increase? Did people interpret the impending crash as risk-on?

Wed, 03/19/2014 - 15:26 | 4569049 Panafrican Funk...
Panafrican Funktron Robot's picture

QE increases the USD nominal price of stocks and bonds.

Now envision a scenario in which QE slows or reverses.

Wed, 03/19/2014 - 15:27 | 4569058 Spungo
Spungo's picture

The interest rate rises to 10%, some stuff happens, world war 3, debt is forgiven.

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