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Pre-FOMC Market Update: Chaos

Tyler Durden's picture




 

ADP "beat" sent stocks and USD up, bonds and gold down. GDP "miss" sent stocks and USD down, bonds and gold up... and now the Fed's emergency meeting has sent all asset classes into a Tapering-the-taper frenzy as chaos hits markets sending stocks up to highs of day (less Taper), Bond yields to lows of day (low growth less taper), USD tumbling (less taper, moar QE vs ECB), and Gold jumping higher (less taper, more QE)... correlation is crumbling everywhere as the Fed's calming communications cause chaos...

 

 

Chart: Bloomberg

 

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Wed, 04/30/2014 - 11:28 | 4712199 Squishi
Squishi's picture

JP Morgan says US Q1 GDP could be revised to zero.

Wed, 04/30/2014 - 11:33 | 4712216 Dr. Engali
Dr. Engali's picture

If you take out the  intangibles  they now include when they calculate GDP , we actually had a negative print. 

Wed, 04/30/2014 - 11:33 | 4712218 idea_hamster
idea_hamster's picture

This is what a market based on Ponzi-finance looks like -- no one is in the theatre to see the movie, only to eat free popcorn while trying to figure out whether that smokey smell is coming from the popcorn maker or something more sinister....

Wed, 04/30/2014 - 11:36 | 4712228 knukles
knukles's picture

Told them once and I'll, tell them again.  Foreward guidance particularly based upon hard numbers leads to a clusterfuck.
Emergency meetings not withstanding.
And if this was so "Emergencyish" why the fuck was not the whole board in attendance?
Sounds more like the luncheon menu discussion.

Which would be exactly the Reality of Onion like news events these days.

Wed, 04/30/2014 - 11:43 | 4712277 ArkansasAngie
ArkansasAngie's picture

Haven't you heard?  The other board members don't exist ... yet.  Congress hasn't seen fit to do its job

 

Wed, 04/30/2014 - 11:44 | 4712286 NotApplicable
NotApplicable's picture

Soooo... do the machines need to be turned off, back on, or both?

Wed, 04/30/2014 - 12:19 | 4712432 Manthong
Manthong's picture

Communications policy is a powerful tool to give guidance to the market.

http://www.youtube.com/watch?v=airT-m9LcoY

This is how the market knows "Who gets the money".

Wed, 04/30/2014 - 13:21 | 4712746 max2205
max2205's picture

Smell?..... I smell new highs TODAY

Wed, 04/30/2014 - 11:39 | 4712258 ArkansasAngie
ArkansasAngie's picture

The November election may just get down right interesting

leave no incumbent in office

Wed, 04/30/2014 - 11:47 | 4712283 Dr. Engali
Dr. Engali's picture

Can we nuke the place and start over? Maybe in Colorado where they located the new CIA headquarters, or in Utah with the new NSA facility. Strange placement of these new sites.... curios.

Wed, 04/30/2014 - 12:29 | 4712499 viahj
viahj's picture

i guess it's more secure near Yellowstone than the NE coast.....  sounds like war placement to me.

Wed, 04/30/2014 - 13:03 | 4712663 seek
seek's picture

Yeah, kind of like they either know the east coast is where you don't want to be, or that they're worried the west will break away and want assets pre-placed there...

Wed, 04/30/2014 - 12:09 | 4712413 Relentless101
Relentless101's picture

No wonder these fucks are so eager to jump into Ukraine. They will replace investment to boost GDP with the lives of American soldiers. Step right up. Uncle Sam wants your blood to keep this dog shit economy afloat. 

Bad world economy = foreign unrest = BTFWWIII.

Wed, 04/30/2014 - 12:04 | 4712387 Pig Circus
Pig Circus's picture

Dr. Engali


Vote up!

11
Vote down!

0

If you take out the  intangibles  they now include when they calculate GDP , we actually had a negative print. 

Back out inflation and what do you got? Shit is what...

 

Wed, 04/30/2014 - 11:29 | 4712200 PlusTic
PlusTic's picture

it would be laughable, it it weren't so sad, how rigged this shitt really is...

Wed, 04/30/2014 - 11:36 | 4712240 MeMongo
MeMongo's picture

Moar you Whore's! Keep pumpin that shit like synthol!

Wed, 04/30/2014 - 11:43 | 4712282 Canadian Dirtlump
Canadian Dirtlump's picture

Coming soon, Janet yellen debuting 24 inch pythons filled with pump n pose.

 

LOL.

Wed, 04/30/2014 - 12:03 | 4712384 MeMongo
MeMongo's picture

Oh great! As soon as I read that the image of moe yellen wearing a bikini style that all female bodybuilders do just made me vomit a bit of my morning yuengling up(:-( 

Thanks Canada!

Wed, 04/30/2014 - 11:38 | 4712245 SHEEPFUKKER
SHEEPFUKKER's picture

Time for another secret emergency meeting before the regularly scheduled meeting. 

Wed, 04/30/2014 - 11:44 | 4712272 Dr. Engali
Dr. Engali's picture

The markets aren't rigged. Mary Jo White assured us of that fact. She even baked us some cookies to make us feel better. 

Wed, 04/30/2014 - 11:31 | 4712209 yrad
yrad's picture

"If I would have known this shit was gonna happen, I would have stayed in England."

 

--The Forefathers

Wed, 04/30/2014 - 11:35 | 4712225 Grande Tetons
Grande Tetons's picture

Could be the post of the year. 

Almost tempted to open another account just to upvote that again. 

Wed, 04/30/2014 - 11:48 | 4712304 greatbeard
greatbeard's picture

I did it for ya'.

Wed, 04/30/2014 - 11:33 | 4712217 Kreditanstalt
Kreditanstalt's picture

Tee-hee...silly "investors"!  That's what they get for ignoring fundamentals and chasing dollar-denominated yield for so long.

JUMP, YOU F-----s!

Wed, 04/30/2014 - 11:35 | 4712230 rsnoble
rsnoble's picture

Some have been known to jump when they're down to their last $50 million lol.  No way possile one could live off that for the rest of their lives lmao.

Wed, 04/30/2014 - 11:33 | 4712220 rsnoble
rsnoble's picture

Emergency!!! The erasers are worn out!!!

Just a huge complex mess of shit that can't be held up anymore and an entire society built on digital zeros and convenience what could possibly go wrong?

I sure wish I had diversified into more foodstuffs than fucking spam.

Wed, 04/30/2014 - 11:34 | 4712226 rsnoble
rsnoble's picture

Emergency!!!!  We're not hitting new highs everyday!!!!  Why is that!!!!  

Wed, 04/30/2014 - 11:34 | 4712227 HaroldWang
HaroldWang's picture

The ramp wasn't due to the "emergency" meeting. It was due to an insanely big beat on Chicago PMI.

Wed, 04/30/2014 - 11:35 | 4712229 Dr. Engali
Dr. Engali's picture

Gold and silver negative on a weak dollar makes all the sense in the world.

Wed, 04/30/2014 - 11:42 | 4712267 Kreditanstalt
Kreditanstalt's picture

Sharps-Pixley headline: JP Morgan says "Gold will never see $1300 again"...go figure where they got THAT "forecast"

The CBs simply HAVE to be just about OUT of real gold.

Wed, 04/30/2014 - 11:54 | 4712333 Dr. Engali
Dr. Engali's picture

Actually that's Morgan Stanley. My take is that they are looking to buy.

Wed, 04/30/2014 - 12:03 | 4712388 Kreditanstalt
Kreditanstalt's picture

They say that "the gold price" is "the dog that doesn't bark".  But my bet is that that dog is barking and barking, loudly somewhere,  and we are being kept from hearing it.

Wed, 04/30/2014 - 11:44 | 4712284 SWCroaker
SWCroaker's picture

When your boat is Titanic sized, things break at different times as the wreck propagates.  It seems Au/Ag are not destined to be coal mine canaries in our global collapse, which flies in the face of history, but (in terms of insanely low prices for a duration past all reason) may also be the greatest gift your government never really meant to give...

Wed, 04/30/2014 - 11:37 | 4712244 The Axe
The Axe's picture

Hey TYLER..SLV acts like shit on really good volume......what up

Wed, 04/30/2014 - 11:46 | 4712294 NotApplicable
NotApplicable's picture

It's a paper tool to manage physical silver?

Wed, 04/30/2014 - 11:39 | 4712250 NOTaREALmerican
NOTaREALmerican's picture

As long as the GDP of the Elysium Class and the Elysium Support Class economy is increasing, it's all good.

Wed, 04/30/2014 - 11:39 | 4712252 LawsofPhysics
LawsofPhysics's picture

Clearly, my definition of "chaos" is considerably different...

Wed, 04/30/2014 - 11:39 | 4712256 Ribeye
Ribeye's picture

at least its not snowing, 

Wed, 04/30/2014 - 11:39 | 4712257 replaceme
replaceme's picture

But we are still good, right?  Full steam ahead all that?

Wed, 04/30/2014 - 11:40 | 4712262 The worst trader
The worst trader's picture

Why am i sooooooooooooooo confused?

Wed, 04/30/2014 - 11:41 | 4712271 DavidC
DavidC's picture

Why am I reminded so much of this?

http://www.youtube.com/watch?v=MX7Yo0tWDgk

DavidC

Wed, 04/30/2014 - 11:42 | 4712274 Obchelli
Obchelli's picture

I say 5bln taper this time

Wed, 04/30/2014 - 11:42 | 4712275 Relentless101
Relentless101's picture

Cock suckers are ripping Singer on bloomberg right now. Pathetic

Wed, 04/30/2014 - 11:43 | 4712279 agNau
agNau's picture

Time for Yellen to find a new dealer to CHANNEL STUFF. Belgium's lot is becoming quite full.

Wed, 04/30/2014 - 11:43 | 4712280 BIHM
BIHM's picture

The Fed got the logical outcome.  The targeted an upward moving market.  So all money allocators (which means all businesses) were given a free put option on the market.  This means they are being rewarded to take unrisk rather than risk.  Allocators did what they should.  They allocated money to the financial market where the risk was nil and the return was high.  Essentially the Fed robbed fixed investments for the past 5 years to prop up the market.  This is the most basic concept of resource allocation.  They got the result their system was designed to achieve. 

Wed, 04/30/2014 - 11:48 | 4712301 LawsofPhysics
LawsofPhysics's picture

Well, ignoring all the new debt that was created, yes, you are correct.  Unfortunately, there is a very real cost for capital (remember money is not capital) and it will be paid one way or another.

Talk about shooting yourself in the foot.

Wed, 04/30/2014 - 11:45 | 4712290 Yardfarmer
Yardfarmer's picture
U.S. Economy Barely Grew in First Quarter
The American economy slowed drastically in the first quarter of 2014, as wintry weather depressed corporate spending and housing sector activity, while smaller additions to inventories by farmers and businesses also held back growth. At an annualized rate of 0.1 percent, the pace of expansion in January, February and March was the weakest since the fourth quarter of 2012, when output barely grew at all. It also represented a sharp deceleration from the level of growth recorded in the second half of 2013, when the economy expanded at a 3.4 percent rate. The first-quarter pace also fell well short of the 1.2 percent rate of growth expected by Wall Street economists before the Commerce Department announcement Wednesday morning. READ MORE »

http://www.nytimes.com/2014/05/01/business/economy/us-economy-barely-grew-in-first-quarter.html?emc=edit_na_20140430

Wed, 04/30/2014 - 11:59 | 4712353 Conax
Conax's picture

 

Auntie Em! It's a twister  It's a twister!!

Someone short silver to $18!  Whoot whoot!

 

Wed, 04/30/2014 - 12:02 | 4712373 tip e. canoe
tip e. canoe's picture

if so, time to stock up the slipper closet?

Wed, 04/30/2014 - 12:03 | 4712383 Conax
Conax's picture

 

AB SO LUTE LY

Wed, 04/30/2014 - 13:14 | 4712367 evernewecon
evernewecon's picture

 

 

The relationship's become where

financial strategists are like little

puppies looking up at a master.

What do you have to feed us 

today?

 

Once the food chain's privatized

it's how much in food stamps do'

you have for us today, and it's the

same in any sector, with the 

controlling firms getting the

richest "gives" in each case.

 

To think interest rates

should remain near 0 is to think

there should be no business cycle.

TBTF aggravates cycles cause of the

immunity from risk.

The emotional and analytical 

motivations can be better informed

so as to reduce cyclical behavior,

if it's too extreme, but

0% off onto the horizon for safe

money returns implies little 

investment value in the dollar

and an economic future on hold.

(But cash hoarders know that 

as soon as rates rise it'll take

less money for comparable payout.)

 

Washington should be looking at

ways of publicly taking on non-

sovereign debt so as to cancel

it, including using banking 

authority and legal theories for

reducing it in whole classes, 

particularly student debt.

 

Bankers do that every day of the

week when they cancel out

pensions, invade Social Security,

cause 401(k's) to lose value, etc.

 

More non-sovereign loss taking/

debt default, with depositors

walled off safely, and more investment

for public purposes, would reverse

serving a nation in debt or prison

in favor of using debt for worthwhile

ends, and enabling people instead of

imprisoning them.

 

One way to reduce the impact

of debt's increased burden upon

the rise in interest rates is

publicly taking on, so as to 

cancel, parts of non-sovereign

classes of debt, such as student debt,

with investors accepting that 

banking authorities acting in the

public interest deem it bad debt.

 

There're obviously many Resolution

Trust type scenarios.

 

The precedent is loss sharing

in mortgage mod's, but that's simply

about holding borrowers' feet to the

fire while supply released in a manner

supporting bank owners' asset values.

 

 

Wed, 04/30/2014 - 12:13 | 4712426 TheRideNeverEnds
TheRideNeverEnds's picture

The USD is going straight down, the fix is in.  More QE and higher prices for stawks. 

Wed, 04/30/2014 - 12:56 | 4712636 The worst trader
The worst trader's picture

We don't need no stinkin GDP up up and away!

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