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Stocks Slump As Hawkish Fed Fears Send 10Y Yields Back Over 2.60%
It appears the upwards revisions for retail sales and not missing expectations for the headline data is the good news that is bad news for markets. With just a few days until the FOMC, it seems market perceptions of potential fed hawkishness (no good excuses recently not to be) is weighing on bonds and stocks. Treasury yields are accelerating higher (10Y above 2.60% for first time since July) tracking oddly perfectly with USDJPY and stocks, having entirely decoupled from JPY, are tanking on the rising rates/Fed hawkishness concerns. Of course, it's Friday so anything goes before we close.
Quite a week for bonds...
And stocks are giving it back quickly... (except Trannies)
As credit has been warning all week...
Charts: Bloomberg
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Was retail sales the last best hope for bad news?
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Carl Quintania on CNBC just said we may see a 5% Q2 GDP print.
Obviously prepping the street for the Big Lie. The Fed must raise now, so they can lower again later.
why not 10% or 100500? seems you need to add minus before 5
White house: We deserve credit for booming markets
http://www.cnbc.com/id/101995560
Frankly, I say we give them what they ask for. Everything they touch turns to shit. So, let them take credit for it and we'll finally get the crash we all know is coming.
An unchecked fed is the best gift the administration can give to the 1% while at the same time impoverishing the rest of the nation.
Edit: BTW we are in the midst of getting our annual anal probe by the auditors.... see you in the funny papers.
Could there be a more fucked up market?
Gee. Now WHO could have seen this coming!!??
LMFAO!
And what did I tell you mooks!!?
http://www.zerohedge.com/news/2014-09-03/nasdaq-tumbles-red-week-sp-cros...
Real quote from White House press release: "Saudi Arabia has an extensive border with Syria.
And the U.S has 57 states.
I still love that one.
Something weird is going on. Housing developments have exploded in the last month in north Atlanta area. I have no idea who the proposed buyers are supposed to be. Seems like only boomers are the ones with money. Everyone else is broke.
those are likely for low income people. HUD has a new program to move very low income people into upper level income neighborhoods. yes, Free Money is involved.
Most are 400k to 600k. No way is HUD helping people buy those.
"Housing developments have exploded in the last month in north Atlanta area. I have no idea who the proposed buyers are supposed to be"
East Coast northerners fleeing the High Tax Zones. Lots of Business in the North (MA,CT,NY,NJ) are leaving and moving south. The People are following the job moves.
If you watch close, when they come back on camera after the break you catch a glimpse of the intern wheeling the nitrous tank off camera stage right.
I don't want to wait for my immediate gratification. I want it all, now, dammit!
Go Carl! Gosh, I love those ads they show about the talking heads... especially Joe Kernan driving off in an Aston Martin and Carl in his hoodie walking to the boxing gym.
buncha twats
I think you have it backwards, what really drove the spike in interest rates is that quadruple witching is approaching (and quarter end!) and one of the big boys was losing way too much with the recent flattening, so they simply reversed it to save their friendly bank and their trillion $ derivative book.
"Ahhh, it's good to be king." - Central Banker speak
Importing deflation, exporting deflation
http://bloomberg.econoday.com/byshoweventfull.asp?fid=461265&cust=bloomberg-us&year=2014&lid=0&prev=/byweek.asp#top
It appears that the "good" economic numbers coming in just in time for the elections are weighing on the BTFD momo crowd. Allow me to ease your concerns.... the fed is bluffing.
Now: It is scary that these fokkers are now too predictable.
Holding to my projection for Gold to 1150ish sometime this fall mentioned here a few times. Adjusting my Silver DOWN to sub-15ish same timeframe.
With tail firmly placed between my legs my most recent BTC projection sucked dick. It sat at a juicy buy point for so long when it didn't pop from there and dipped some of the cash waiting to hammer it bailed . . . . . . . my analysis not Cramer's. Nothing wrong it just needs to grind out more dirty and laborious work on the chart.
had Spider taking one more ridiculous momo monkeypalooza ride to 2150ish or north of 2200 but I just don't know. Just not sure right here and right now. TBD.
Hawkish FED? Please...
As I've said before, a "more hawkish" Yellen is like saying Bardot at age 24 was "more ugly" than she was at 23.
Meanwhile, they have to try and have DAX finish as if nothing happened.
Getting killed on my bond bet again...not crying about it though because if it really does mean "escape velocity" then maybe we really will see a jobs recovery to go with all that "negative growth."
For the record I have said now is a good time for sticking the toe in the water for equities as any big shot in growth (going into Winter?????) is inflationary (in the sense of growthiness.)
We'll see. I'm holding tight until next year. Soaring yields in treasuries says to me someone has a CAPITAL call (as opposed to a mere margin call) and something big is trying to avoid an imminent default.
Energy prices have gotten hammered this summer. If that stays true through December then I think we'll we who's swimming naked on this so called recovery.
And at 10am the S&P stopped going down, turned around and gained +6 handles.
Algos are reading ZH "headlines".
Sooo, Yellen has found the culprit for the bond rally since April and has come to terms with them, is that what we are to believe? Or are we just going to establish a bond trading range for the next five years? Descending 200ma for $TNY is at 26.5, today's move is a clear break about the bollinger band, if you believe the chart bonds should go another full point or more, probably two, though we are WAY freaking below where anyone thought we'd be by now, if you look at the curves last January - everyone thought we'd be back to 4.0 yield by now whatever the consequences.
And I just plain don't understand the PM prices. I've never been a gold bug before, but I think I've got it now or else maybe it's Ebola. The chart says don't buy now, don't catch that falling knife, but my head says OMG this is nuts grab a bunch before its too late. Physical market failure should spike the prices at some point even if economics does not.
what's $TNY?
Here's my suggested strategy for duration: short, flat, short, flat, short, flat...
Here's my suggested strategy for gold: BTFD