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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thatthingcanfly's picture

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

fockewulf190's picture

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

Honey Badger's picture

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

fockewulf190's picture

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

nuclearsquid's picture

12 points! Beware of falling bankers.

Soul Glow's picture

Everyone did ask them to jump.

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.

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.

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.

asteroids's picture

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

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...

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  :-))


El Vaquero's picture

Stocks dropped?  BULLISH!

TruthInSunshine's picture

+ China, bitchez (Minsky)

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

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.

Babaloo's picture

1,  Nobody who knows anything thinks this is dovish.

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

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.

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.

youngman's picture

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

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.

buzzsaw99's picture

skynet has gone full retard

greatbeard's picture

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

Quinvarius's picture

The event is over.  Fade everything.

pound the vix's picture

Belgium just lost a fortune on those new treasuries

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...

El Vaquero's picture

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

headhunt's picture

you should sell derivatives based on that deal

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. 

headhunt's picture

Put me down for a million Ukranian-Rubles

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.

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.  

The_Ungrateful_Yid's picture

Buy today's dip, tomorrow new highs.

SheepDog-One's picture

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

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.

SheepDog-One's picture

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

Spungo's picture

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

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.

Spungo's picture

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