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The Market Reacts To The Fed's Minutes
The USD is soaring after somewhat hawkish Fed Minutes (up 1% this week) - pushing up towards critical resistance at 1-year highs. Treasury yields slammed 3-4bps higher and are holding those losses (30Y up 11bps this week). High yield credit is at the worst levels of the day as stocks retrace gains towards record highs. WTI crude jumped 1% on the minutes, back above $96 as gold slipped modestly back below $1290. Stocks, having kneejerked lower (below VWAP) have been ripped back higher by a VIX-slamming algo that decided that FOMC uncertainty is exactly the signal to buy certainty.
VIX lifting stocks...
Nothing else retracing...
and credit at lows of the day...
Charts: Bloomberg
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Printing Press Uber Alles.
...World War is now Guaranteed.
Stay safe fellow ZH'ers.
WW or they finally announce Ebola is in a "Western" country or an actual attack on a Russian convoy and Putin blows the fuck out of Ukraine/Kiev?
Ok, so now that the fake reaction has taken place, the headlines are all printed, and the gullible have positioned themselves accordingly, when do we get the reversal?
Let's see how long it takes for this bluff to get called out.
Watch gold for the clue: http://www.pmbull.com/gold-price/
@ Maxx
I have to tell you a dirty little secret, the WWIII is already on for at least 6 years.
LOL. Is their investing horizon down to a nanosecond?
It's all Bullshit!!!
The Federal Reserve must continue printing to the max. No way out and it knows it,
Only bluffs. It's stuck keeping rates low for Obama borrowing.
The Federal Reserve just keeps back-door buying treasuries until the currency blows.
Running an engine without oil, intentionally.
They know the oil tank is dry.
Pensioners need to get out soon.
Take the hit and get out.
>>>Pensioners need to get out soon.
Take the hit and get out.
Agree... in spades. For one brief, shining year, your AGI will look like a rock star's, then you cough up 40% and move on.
Just think of the tax hit as being your contribution toward building a better world. In you own small way, just like the US Navy.
ECB talks rates lower, doesn't manipulate them lower.
FED talks rates higher, but manipulates them lower.
I respectfully disagree. I predict that QE will go to zero and rates will start rising sooner rather than later. Even the central bankers are starting to realize that if we don't get some strength back into the dollar, there won't be any economy left to save. I'm not sure when stocks will finally get the memo, but if I was a Baby Boomer planning to retire and had been investing all this time, I'd take my profits now and call it good.
The economy is not crashing because of low interest rates.
Agree, Rothschild 101 inflate then deflate and buy the world for a song; a strong currency makes the task even easier.
I also disagree with those that think they're trying to destroy the dollar, oligarchs love paper and trading money they create out of thin air for real assets is a win-win for them.
The entire world is in the same predicament. There is so much debt that the ONLY course of action is to rope-a-dope the gullible, keep paying theINTEREST ONLY on the debt, until that becomes unsustainable. By then the PTB, will safely have purchased their farms and ranches to produce their sustenance, while amusing themselves by banging legions of Ukraine lovelies looking for Survival-Daddy.
Belgium to increase its bond buying activities.
The new normal.
These people are here to ride the waves and the bigger the better. The only thing they fear is a dead calm sea.
Go this way! No that way!
GET OUT!
CASH IS KING! My lumpy mattress never slept so good.
This is just the retard reaction. Well see how the next few months go
The trade is short VXX via the 27 puts that expire this week. VIX futures were bid going into the Fed minutes, yet the spot VIX sold off. As hedges get unwound, VXX should break down to catch down to the spot VIX weakness over the next few days.
They might raise rates just to slam Gold.
Then when housing falls off a cliff, they can lower rates again.
Then if the markets take a crap, they can reinstate some QE.
Then they can jigger with rates again.
Lather, rinse, repeat.
Wait! How can that be? Tyler is constantly telling us nobody wants the dollar anymore!
The dollar can never rally...
"Markets" react..... Lol
Yeah...exactly. "What movement?" This is a fart in a cat 5 hurricane. The Fed needs to give up forward guidance...the only thing happening with this bs is "churn." One the one hand "the end of QE continues." What's the "on he other hand" again?
Now we know why Barrack came back to DC.
Message/market coordination so that the vacations can continue!
The market?
Who is buying and who is selling, beside digits up or down on computers?
the fed will NEVER raise interest rates and the market knows this.
the reason the high yield market is crashing is anticipation of a stock market crash and deliquiencies and defaults on debt.
raising rates will not happen ever until after the currency is totally hyperinflated and destroyed.
Change your name to Bernanke and charge $250,000 per hour for that information
BTFATH!!
Yellen just did the right thing ( if that's even possible )
Suggestion that a net buyer of U.S assets with a current balance sheet of 4 Trillion will soon become a "net seller" is really all anyone needs to know / hear.
Kong has it down: http://forexkong.com/2014/08/20/comments-on-the-fed-all-i-needed-to-hear...
the fed will never reduce its balance sheet unless there is obvious persistant inflation. still leaves plenty of room for mkts to move 20% in stocks and bonds!
hawkish
i dROne u-iSIs
martin armstrong has called it right once again, everyone here bashes him for the most part but his calls seem to be dead on regarding gold, USdollar, stocks, and war. The global debt crisis will emerge on the edges, it will then crumble inwards.
who the f is martin armstong and EXACTLY what did he call perfectly "again"?
People bash him because he ridicules the buy and hold gold obsession. But he's been right. Stocks will continue to rise through interest rate hikes.
double top in the spooz?
Just blow me! just print another trillion and pump the market to S&P 2001 cuz thats all a trillion can buy these days.
TV dorks get an advanced look, and still get it wrong. Perhaps the Fed should release the minutes in bullet point form.
USD up, Oil up, Gold down. Makes perfect fucking sense.
California ebola patient press conference after the market closes so as not to encite selling?
http://www.news10.net/story/news/health/2014/08/20/ebola-in-sacramento-c...
LIVE AT 1 p.m.: Update on Ebola in California
News10 Staff 11:58 a.m. PDT August 20, 2014
ebola-virus
(Photo: AP Graphics)
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State and federal health officials are slated to update the media on "the current status of Ebola infection in California" during a 1 p.m. conference call, according to a press release from the California Department of Public Health.
News10 will provide live updates from the call in the stream below. If you're on a mobile device, check out the stream at http://bit.ly/1naPb7h
Speakers on the call are expected to include Dr. Gil Chavez, deputy director for the Center for Infectious Diseases and State Epidemiologist at the California Department of Public Health, and Dr. James Watt, chief of the Division of Communicable Disease Control for the Center for Infectious Diseases.
the gang of myopic traitorous benedict arnolds at the federal reserve know damn well they can not raise interest rates.
-- what would the monthly interest payment be on $17,555,437,713,904.00 (don't ask me for the answer and yellen can only count fingers and toes)
the dumb fuckers jawboning, spitting and foaming at the mouth like a pack of geriatric rabid mongrels attempting to perpetuate the lie of rising interest rates and the timing of.
to keep the ponzi scheme from collapsing (like WTC bdlg #7), the ill-bred, white haired, demented, garden gnome will follow the lead of the brilliant donkeys at the EU to enact negative interest rates
what does yellen's pussy smell like? -depends
Que absolute beexching. It was so predictable, are you long?