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Stocks Give Up Post-FOMC Gains; Dollar, Bond Yields Surge

Tyler Durden's picture




 

Obviously, today's market was all about the Fed. some brief stop-running early on took out yesterday's highs only to fall back before Yellen... then the fireworks began. The initial kneejerk reaction was to sell stocks, sell bonds, and buy USDs. Then came the re-reaction - VIX was slammed below 12, the S&P 500 surged to near intraday record highs, bond yields accelerated higher, EUR and JPY weakness sparked USD bid, and PMs slipped lower as Yellen meandered uncomfortably through a two-faced press conference. By the close, the USD had hit fresh 4-year highs (USDJPY over 108), stocks had roundtripped to unchanged from FOMC, Treasury yields were notably higher, VIX back over 12.5, Trannies surged.

 

From the FOMC Statement, stocks dumped, pumped, and dumped

 

And from Hilsenrath's hint yesterday... Trannies are exploding...

 

and Builders surging after this morning's NAHB hopefest... Energy red post Hilsenrath... (with Health care the best performer post FOMC)

 

The S&P 500 smashed to near-record highs, then faded back to 2,000 (and bounced)

 

VIX dumped below 12 to help stocks... then gave it all back...

 

Across the major asset classes today...

 

On the week, Treasuries are now all higher in yield, led by 30Y

 

but stocks decoupled from bonds into the close... as they realised bonds' hawkish reading of the fed...

 

The USD surged to fresh 4-year highs

 

USDJPY broke 108... but stocks decoupled from carry into the close...

 

which might be worrying Abe as he is not getting the Nikkei benefits he needs to keep the Abenomics dream alive - and a collapsing JPY could simply be mass capital flight...

 

which pushed commodities lower in general...

 

Charts: Bloomberg

 

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Wed, 09/17/2014 - 16:10 | 5227510 Grande Tetons
Grande Tetons's picture

There is more to steal. Raise rates...fuck you, Yellen. 

Wed, 09/17/2014 - 16:20 | 5227548 summerof71
summerof71's picture

Quick! Everyone flee to the safety of the dollar!

Wed, 09/17/2014 - 16:24 | 5227557 viahj
viahj's picture

the eCONomy and all the BS data points are nothing but pivot points for the algos to run the markets up and down, skimming.  until the FED actually ends ZIRP and goes negative on the return for excess reserves held, it is all just a show to calm the herd and while milking them dry in milisecond transactions. 

Wed, 09/17/2014 - 16:40 | 5227625 CRYBABY
CRYBABY's picture

I think you mean "positive" on the IOER......either that, or you just don't actually understand what you're talking about

Wed, 09/17/2014 - 16:54 | 5227675 TheSecondLaw
TheSecondLaw's picture

Well, there's a new war without end to finance.

Wed, 09/17/2014 - 17:59 | 5227909 WorkingPawn
WorkingPawn's picture

Yes - but its the war on Ebola were funding (no ones likes to use the W-word with ISIS)!  We're deploying 10x as many combat troops to fight Ebola as we are to fight ISIS. 

We did manage to take out a truck and gun yesterday from the air though - that will show those terrorists!  Go drones!

Wed, 09/17/2014 - 16:10 | 5227511 Wait What
Wait What's picture

that DXY... something ill it portends.

Wed, 09/17/2014 - 16:25 | 5227564 Bell's 2 hearted
Bell's 2 hearted's picture

deflation

 

laugh all you want ... now

 

but you'll see

Wed, 09/17/2014 - 17:07 | 5227714 Lithophiliac
Lithophiliac's picture

I agree. How is this for "unintended consequense". Just go long $ to hedge your Au.
Lucky me, I bought my gold with crappy euros.

Wed, 09/17/2014 - 16:14 | 5227519 madcows
madcows's picture

Dow closes at all time high... again.  WTF, just Buy.  Seriously.  Just F-ing Buy.  It's your only hope.  If you have two f-ing nickels to rub together, use them to buy any frigging 10 cent stock.

Wed, 09/17/2014 - 16:21 | 5227550 surf0766
surf0766's picture

Whatever you make on that 10 cent stock they will take back. Just as they have done time and time again. You are their tool.

Wed, 09/17/2014 - 16:17 | 5227540 Dungholio
Dungholio's picture

I pooped today!

Wed, 09/17/2014 - 17:15 | 5227743 Not Goldman Sachs
Not Goldman Sachs's picture

Quick, chart it

 

 

Wed, 09/17/2014 - 17:56 | 5227903 WorkingPawn
WorkingPawn's picture

Heed my advice - go short on poop!

Wed, 09/17/2014 - 16:22 | 5227553 Atomizer
Atomizer's picture

Compare 2008 to 2014 vs IMF & BIS moderation of currency influxes per country. 

Pale evidence will be found. Start below and change years. Follow the other culprits mentioned above. 

http://www.x-rates.com/average/?from=JPY&to=USD&amount=1.00&year=2008

Wed, 09/17/2014 - 16:29 | 5227577 Chupacabra-322
Chupacabra-322's picture

What Yellen does with her free time.

http://www.liveleak.com/view?i=58a_1410970246

Wed, 09/17/2014 - 16:33 | 5227599 walküre
walküre's picture

2Y German bunds sold at negative -0.07% "yield" today

'nough said

Wed, 09/17/2014 - 16:52 | 5227667 buzzsaw99
buzzsaw99's picture

There is nothing wrong with your television set. Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper. We will control the horizontal. We will control the vertical. We can roll the image, make it flutter. We can change the focus to a soft blur or sharpen it to crystal clarity. For the next hour, sit quietly and we will control all that you see and hear. We repeat: there is nothing wrong with your television set. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to – The Outer Limits.

Wed, 09/17/2014 - 17:19 | 5227761 In.Sip.ient
In.Sip.ient's picture

Hmmm... Buy USD on extended ZIRP?

OTOH, QE ends?

So traders are positioning into free USD cash to buy USTs

when they crash???  If the FED ain't buying USTs then obviously

thats a sell signal, so rates rise, bonds fall, and free cash mops up.

 

Then what???

Oh, and QE3, of course, can't become QE4???

Really???

 

Wed, 09/17/2014 - 17:19 | 5227770 RattNRoll
RattNRoll's picture

Gold getting rocked again

Wed, 09/17/2014 - 18:15 | 5227956 vaft
vaft's picture

You can always count on double 13% swings in the VIX on options expiration days. Just markets being efficient.

 

Wed, 09/17/2014 - 18:21 | 5227972 pachanguero
pachanguero's picture

Here in Thailand there's a huge property bubble  I live in a beachfront condominium six years old, 20% occupancy rate.  Leading in Asia, I see this in almost every major city including the Philippines, Hong kong, Singapore, and just about anywhere in China.  When this sucker blows watch out!

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