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Panic Buying Ensues After FOMC Minutes Unleash Weaker Dollar
If you liked King Dollar, you'll love Dumping Dollar... Gold, Treasuries, and Stocks are surging after the release of the FOMC minutes suggested The Fed will keep rates lower longer. The USDollar is dumping - just as The Fed suggested it was worried about a strong dollar. Stocks remain negative on the week and below the levels of the last FOMC...
Equity surge driven by fun-durr-mentals
who could have seen that coming?
ES algos desperate to latch on to any FX pair that is going up, now trolling AUD
— zerohedge (@zerohedge) October 8, 2014
From the last FOMC Statement...
Today's moves...
On the week, stocks are still red..
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Hong Kong’s Umbrellas are ‘Made in USA’
http://www.boilingfrogspost.com/2014/10/08/hong-kongs-umbrellas-are-made...
markets in grand mal seizures every friggin' day.
Gong show, led by Gong masters. What a joke.
I haven't seen any evidence of effective monetary policy other than jawboning algos. Seems that's all that's left.
I wonder if this is on page 1 of the 'doomsday book'
What fundamentals are these you speak of? Such sophistry and tales of the Devil's work. Burn those Graham and Dodd men at the stake!
Were there any large options positions taken just ahead of the release of the FOMC minutes? Maybe the guys over at Nanex can help shed some light on this.
Of course I am excluding the members of Congress, since they can legally trade on inside information.
So many Sheeples to Shear, so little time.
I think the sheep shearing has been over for a few years. The phase we are in now is the illusion.
"The Smart Money is Dumping Stocks", that's why i didn't buy this bullshit article!
I love dumping dollars...right into fat stacks of silver, bitchez! "dumping" and "dollar" go together just like taking a dump and toilet paper! haha
No offence intended but hasn't the "bitchez" comment become a bit cliche?
No. Bitchez.
"Of course I am excluding the members of Congress, since they can legally trade on inside information."
Hi I am your new Congressman. My name is Coruptius Maximus.
If the Fed wanted a weaker dollar it could quietly buy physical gold and stack it. That would pump dollars into the world economy sending it down. That's the old fashioned approach of a well-meaning Fed. Our Fed simply wants to put dollars in the pockets of the billionaire class.
Yes, the dollar has been doing an epic ramp for the last three months and the Fed is just getting wind of it? The 'UP' was Fed approved as will be the 'DOWN'. 79 here we come.
Page one is to distract the SEC with child porn. Weaker dollar through primary dealer laundering is page 2.
more joobux, yay!
At least it's based upon fundamentals.
LOL. Yes, it's based on the fundamental "Heroic Protagonist" in the human animal. LOL.
Exctly how many rabbits does Mr Market have in thet hat (at criticaal support lines)?
what is the market of which you speak?
Just buy that fucking dip...6 years running. Go back to sleep deer in the headlights.
Resistance is at 1965 and that's where we are now. Talk to us AFTER we break that. This is still a down channel until then.
Well they managed to push it through 1965. Does this change your short term outlook?
It closed at 1969. the difference is not significant. One more up day and I'll short it again.
Ok, thx for the response. I was waiting for it to cleanly break the low from last thursday of around $192.50 and i was going to pile in short.
Not sure now. It was impressive today. Fuckin crooks.
This could be the start of the blow off top.
Yes. it's such a nice stable international financial and political situation that no one is worried about anything. So the market is stable and predictable. /sa.
Algos will probably rally the market after all traders are dead from Ebola.
Who knew ebola would be bullish for the markets.
Ebola, it's kind of like Mother Nature buying back stock.
LOL. I hope the NY metals exchange traders die first !
If the Fed links its rate increase to economic data, then shitty economic data will mean equities will rally, just like for the last 5 years. And I am pretty sure we will just get shitty data from here on out.
Your statement is true; but it refers to the past. The Fed. won't find it politically "wise" to raise rates; but this does not imply that the market will continue to respond. The market is a limited thing. We've all seen the buybacks by listed companies; that's about over, now; we've all seen the knee jerk reactions to Fed. anouncements, pronouncements, etc.; but a market that doesn't make new highs ceases to attract those in desperate search of return. A market like this one always has one fact in common with all over-bought markets through-out the history of equity markets; when you want to sell, the nasty question comes up; to whom? And at what price are you going to get a bid ? This is what we're seeing right now; everytime the tiniest bit of caution enters the buyers minds, the price falls dramatically through huge vertical ranges in a day, or two days; everytime the prices are bid up again it's never to a new high. It's no longer a bull market; and over-bought, over-age bull markets fall apart.
That's what they've done in Japan for the last 20+ years
the Japanese Stock Market did not go up for the last 20 years. On the contrary. Their "peak exuberance" stands out very clearly on a long term chart, and it was a long, long, time ago.
I couldn't agree more with your sentiments about shitty data from here on out. Growth is over; done, finished, morte, kaput.I'm not trying to pick on you; it just seemed like a good place to link a post I wanted to make about the fact that the entire stock market is a limited thing; it's not infinite; the "money on t he sidelines" is not infinite; if there even is any.
Fly! dove birdies fly! cooo, cooo
Fed just tried to lure any suckers left.
I don't think there are any left.
Someone tell Gartman to throw some more money at the fire. I think that should keep their house from burning down.
I would not be surprised if Dow ends negative today
I'll take the other side of that bet. It's up nearly 300 pts since the first 'stocks are plunging' post and the day ain't over yet.
All it takes is NY Fed and NSA overriding the system and typing up numbers on computers, which is the beginning and the end of the day
Hey, does the Fed have any gold on their ledger or are they still broke.
Asset side of the ledger is to the moon alice.
Paper, paper everywhere but not a bill to eat.
Haha, assets based on Arther Anderson accounting!
Enron would be proud indeed.
Guy on U-Tube who knows some of these people and went to college with some of them says they're involvent in a mark to market accounting; right now; and that's before they actually t ried to sell anything. Even in terms of FRN's they're broke.
I'd say NYFED/Kevin H are showing everyone who runs bartertown.
I'm old enough to remember the days when a healdine like "Fed Officials saw global slowdown among risk to US" or "IMF cuts growth forecast" would actually see risk-off selling. These are (sadly) different times ekm.
We do see "risk off" selling; the long Bond rallied today, too. there's a divergence between the smart money and the dumb money. The last available loads of suckers are being fed into the sausage machine. it's not a healthy market; it's a market in some sort of desperation and mania.
delete
We are about to start a new streak of consecutive days with gains. Just how the FED computers compute. Bread for everyone.
No, the fed is luring sucker shorts in when they let the market fall in order to squeeze ithem later. The game hasn't changed and it's almost too easy.
http://www.zerohedge.com/news/2014-10-08/just-what-feds-doomsday-book
Fed has another book they go by
What they serve to us sheeple is just propaganda
Doesn't matter what link you give me, especially since I've read it, the game is what it is and I'm profiting from it.
Oh, that's a different story.
Good for you
Just make sure you don't get caught long with circuit breakers get triggered
It's like I've been saying. Only play in the casino with what you can afford to lose, because when they pull the rug there will be no escaping and no profiting from the downside. It won't be like 08 at all.
hm ...what if Europe, Japan, China, South America sell Long Term US Treasuries to deal with Ebola, Lack of Jobs, Weak Economy, Corrupt Investments, Rising Public & Private Debts, and US War & Sanctions?
I guess you addressed the Morning Wake up below as the only time it matters.
Maybe I'm still just thinking about all the risks and Black Swans.
Hey... Foreign Sovereign Purchases on hard Assets could trigger a sell off of USD... Not enough gold to purchase so that would not matter at all. Land, real Estate, Highways, Railways, Bus Systems, Trams, Bridges, Utilities, Natural gas distribution, Water... Ports & Shipping, Educational Institutions, R&D Institutions, Alternative Energy, ...buying up or paying off Public & Private Debt (Foreign Sovereigns)
Seems like a Libertarian Idea: Foreigners Using Bank & Public holdings of US Long Term Bonds to pay off National Debt.
Fed doesn't give a shit as long as it goes up.
It's the Street likes the old squeezolas, washes and rinse cycles.
Right, but the fed isn't going to let the market fall significantly after years of coaxing it higher.
Let? There will be a point where the returns on investment have diminished so significantly that they will need even more trillions to buy MBS and UST bullshit. There will be a point when it all crashes. You know that.
Sure it will all vaporize while we sleep, but until then.... party on Garth.
Not with an election a month away.
"Fed just tried to lure any suckers left."
B I N G O !
Give that man a Cigar !
They are never going to raise rates. They knew that they can't. The market would crash. Its that simple. Any time the market looks like it is going to collapse all they have to say is.. we may keep rates low for a longer period of time. This has been going on for the past 5 years.
How long until we get negative interest rates? That ought to spur the economy right?
who's already positioned for the triumphant return of QE next summer? this guy! that's who! Bring on QE4!!
"They are never going to raise rates. They knew that they can't. The market would crash. "
Higher rates will incinerate the levered Treasury Complex, carry trades, and destabilize the derivatives stack.
A funds rate of 3% would probably destroy half of the TBTF in a week, and I'm not just talking banks: hedgies, insurers, pension funds like sCALPERS, bond funds like PimpCO & Janus, the big swinging dicks CNBC trots out to entertain with their scorced earth large scale position horseshit, etc...
Then there are all the idiots who have been talked into variable rate mortgages or who have taken out home equity credit lines that would suddenly find their nuts are in the vice...
don't forget LIeBOR. if that ever reached 3%, game over. that's why ARMs are smart.
So what your saying is they'll wait till after the elections
It would be comical, if it wasn't so pathetic, watching these morons painting themselves into a corner. Your basic 5th grader could figure out that there is no way out of this mess. Simple math:
$20 trillion at 3%=$600,000,000,000 in interest. High, but doeable.
$20 trillion at 6%=$1,200,000,000,000 in interest. Ouch!
$20 trillion at 15%=$3,000,000,000,000 in interest. Game-set-match. Reset, do-over.
Actually, interest rates don't even have to go up for this whole fiasco to blow up. With all the current "wars" (Middle-East, drugs, poverty, terror), not to mention the coming war on Ebola, I would not be surprised to see the debt rise to $40 to $50 trillion by the end of the decade, in which case it's game over anyway, because by the $30 trillion mark either interest rates go up (which they can't), or we have Zimbabwe style inflation.
Good times, baby!
The Fed is scared shit and so am I. There is no way to raise interest rates without risking a major recession. Only way to raise rates is if we achieve red hot growth in US production which is not in the cards without an all out war requiring major wartime economy. It also presupposes winning that war. In essence monetary system is no longer functioning nor is the political system which means "Black Swans are Flying"
nobody could have seen this coming. lol
Good thing "somebody" knew to sell enough gold this morning that the eventual pop from this newz would only bring gold back to unchanged.
These coincidences are many, and predictable.
/I am alergic to coincidences
//Especially predictable ones
nothing left but jawboning.... this too shall pass.
How did we ever allow WORDS to become more important than ACTION AND RESULTS !!!
It's proof of what we mean when we say we're exceptional!
(maniacal laughter)
Lake Woebegone; the little town where all the children are above average.
That group of popinjays some refer to as acedemics, who exchanged their morals for money, decided their words were more valuable than hard work.
This helps to explain how Obama was elected twice.
So was the previous guy who started this mess. Just goes to show how stupid we have become.
New all time highs for everybody who still believes in us. LOL
The irony is nobody really believes in them, but everybody believes that everybody else believes in them. Need that kid to shout "hey, that bitch is naked" for the panic to start.
By end of week all green like nothing ever happened. This is how the algo's roll.
What a Joke, after they put a months long and longer strangle hold on the commodity sector they toss us a bone. Yes folks no manipulation of markets going on here...THE SEC IS A USELESS BUREAUCRACY!
Party on Wayne
Party on Garth
Must lower dollar index, must make peasants pay more for food, energy, and other goods, must make them invest in stock market...
Congressional squabbling, inept global leadership, and now our Fed thinks they need to micromanage EVERY GODDAMN TICK on the S&P 500 (!) Gotta retain humor and perspective to stay sane, cuz this is NUTS !
USD will show Federal Reserve hoo's the boss
(hint - it ain't the FR)
Consider yourself "forward guided."
Who said Central Planning doesn't work!?
Gold isn't surging.
Up $8 is better than a poke in the eye with a infected Ebola guy's unwrapped blood sausage.
I wonder if collodial silver can help fight ebola :/
And that shocks you?
so based on this kind of reaction, exchange rates are the key to prosperity?
this is too hilarious.
at 3pm, the half-life clock will start to tick, over under on 4 trading days anyone?
i don't bet
but what lurks beneath ... is near to surface
i'll take the under. these gains gone by friday close.
'we don't engage in currency manipulation'
10yr yield just shit the bed along with the Japanese and all the suckers that were buying up the DXY
Buried in the report
"The System Open Market Account manager and the secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability."
Meaningless tripe.
Very true.
Knukles, you're in danger of becoming cynical.
10yr yield sitting on 52 week low
Banksters furiously buying the belly of the curve and selling the 30yr to keep mortgage land from puking.
Fails to deliver are going to be fun to watch the next few months.
The emergency repo window dressing at the end of the next quarter will redefine the term epic.
By close they'll sell the news. Stocks are overvalued. You'd think the gold market might get the message by this point.
Oh you mean the paper gold market! The one by which supply is inflated due to ETFs that have no intention of ever giving gold to their shareholders. You mean that market.
The super fine print says they can pay in paper currency so it's all legal.
Markets are UP 220 points now!! How is that silver thing working out for You? Suckers!!
Still got all my silver in a storage unit. It's sitting there giving me peace of mind. How do you like chasing paper and hitting buttons like a monkey all day?
As if you were buying..
Let's see.."slave to the government" - your own...words...
here for 26 weeks.....
Fuck Off Troll.....what a putz statement.......just what one would expect from a douchebag that actually SAYS it's a slave to the gubbermint.....
How moronic...
The supply of physical is drying up. HMMN.
hear me now and believe me later. there are no organic sellers. if it goes down it is due to naked short sellers who will be squeezed in due time. there is no market, there is only old yeller.
Wouldn't it be a hoot if algos saw no more big shorts, and rolled this puppy over, returning everything to Unch ?
The fed can't allow deflation (a strong dollar) to set in. It would make it more difficult for the government to service debt (less tax revenue), bust many debt-laden consumers, and simultaneously pop the bond and stock market bubbles. Not to mention it would make things cheaper, and help those who save vice spend - can't let that happen either...
Can you say QE4?
Seems like they had to know that killing the Ruble and hobbling the Euro Zone with Russian Sanctions would Strengthen the USD.
They just let it play out knowing they would come back and weaken the USD.
I think Tyler means "trawling"
Well, it should get more interesting once you understand several major factors that will ultimately affect gold’s price in a very dramatic fashion; factors such as 1) government insurance on bank deposits; 2) US Treasuries bought by foreign banking institutions and the Federal Reserve; 3) the gold carry trade; 4) gold that may or may not be in Ft Knox; 5) “cash equivalents” that show on corporate balance sheets, domestically and internationally, (where it used to be simply, “cash”); 6) Mortgage Backed Securities (MBS, owned by the Fed) et cetera.
For example, “How does insurance on bank deposits affect gold?” By this factor, if a bank fails, all deposits over $250,000 are lost. This creates a major problem for large depositors (businesses and wealthy individuals); and led to the creation of so-called zero-balance bank accounts (they go by several names). By this device, balances in large accounts are swept into US Treasuries at the end of each day, which leaves a zero balance; which protects against bank failures. This led to a major problem: there weren’t enough Treasuries available to satisfy this demand by domestic and international bank depositors. This, in turn, led to an astronomical demand for an alternative; such as MBS. Please notice: this problem is international in scope and magnitude.
So, how are all these factors related to gold? They are all “cash equivalents” in that they are all economically and ultimately convertible into gold – and no one seems to know it.
And then there is Red China, sitting with some $1.3 Trillion in US Treasuries, and very anxious about the situation. Why did they, soon after they took possession of the Panama Canal, organize an ALLIANCE among Mexican and Columbian drug cartels, Chinese Triads, Chinese communist party and several US government agencies (Congress, DoD, DoJ, DEA et cetera)? Simultaneously, they smuggled into the US 150 top level Chinese crime bosses thru Panama. Don’t take my word for it; I collected this info from testimony before a congressional subcommittee and Federal Reserve publications.
Are members of this ALLIANCE preparing for the day when they will put on DHS uniforms for the purpose of collecting on those US Treasuries?
Or, perhaps, they are practicing for a performance at the next Super Bowl?
Seriously, ‘Why did Congress give the Canal to the Chinese communists?’ Nearly 25% of America’s foreign trade transits thru it every year; and Congress gives it to an avowed enemy? It was given as collateral for those Treasuries China was/is collecting.
Further, since the DHS is modeled on French Committees of terror (1792-4), the Judeo-Bolshevik cheka, and the Nazi Schutzstaffel, what possibly could its real, unstated, purpose be… and who could be more useful as assassins, “watchers” or “listeners”… native dope-heads… or members of the ALLIANCE?
So a week or so ago people were worried about them doinga first rate rise in March, brought forward from June. Reality is, nothing has changed. I suspect they want to slow the pace of the USD move, but it will not alter the eventual path. There's no more QE and the other major economies are in a mess. People will be back into the USD within a week I'd say. Once the short covering of stocks is done, you should see them come straight back down. Technicals on stocks stink.
The only thing the Fed can't control is Ebola. If that surges anywhere outside of W. Arica then they will have no choice but to sit down and shut up. It might be the only force that can stop the Fed. How odd is that?
If Ebola does not get worse then the Fed will continue to play the currency game and they are going to talk down the dollar as long as humanly possible.
The question is without QE who is going to buy the Treasury and at what price. The Belgium ponzi sooner or later will be exposed.
Everyone needs to buy. The puppet masters are getting impatient to sell.
http://www.cnbc.com/id/102071266?trknav=homestack:topnews:10
So, right back to where everything was 2 days ago then.
Bad idea to trade on central planning in my view.
Probably not a top but certainly the market is acting toppy. Oil is getting hammered again too.
Market is nucking futz.
I do what I can to be nucking futz too, but it's hard work.
I think a lot of people will take this opportunity to get out if they hadn't already, Europe is fucked, this shit doesn't change anything, a lot more people realising this
FFS HOD are they really going to go for Dow 17k finish?????
It's a private club and you can't afford the admission!
FED 1000
ZH 0
But what is oil up to?
what happened? did the fed unleash another round of qe?
Yellen's 'put' is bigger than Greenspan or Bernanke's. Market can't even go down 3% anymore without them intervening.
The last time SHY (1-3 yr Treas Bond Fund) was up this high Gold went on to all-time highs.
Gee. If you knew what was going to be in the minutes you might have been tempted to hammer down PMs in order to grab on the cheap and ride the Fed minutes escalator up... Fortunately the SEC would prevent anything like this...
The Fed is always concerned about things that are good for the general populace:
Strong dollar/ not enough inflation? IT'S A PROBLEM!
The "problem" being that they are not enslaving us fast enough to stop the global awakening.
That's a pretty big weekly " bearish engulfing" candle there on the USDX mates. ;-)
I keep thinking of the Fed. Governer ( can't remember his name) Preaching how the Fed. liked the strong $, and how it could rise another 20% before the Fed. got concerned. He also said it would help cap the need for rate hikes.
What a village idiot!
I was surprised when the Fed. showed concern for imports, and the strong $ pushing inflation down. What a load of "horse shit". The fed is worried about exports, because the global economy is slowing down and the stronger $ just exacerbates export issues.
"...and the strong $ pushing inflation down."
that's the only thing and only reason they are concerned about trade and imports/exports: must.have.inflation.
Hmmm.
Someone knew something at 1:45 today. Did someone break their press embargo?
Hey ZH, can you pull the nanex data?
Cheers.
Fuck it all. Just talked to the lawyer representing BAC in my fraud lawsuit. Meanwhile, I've been served with motion for summary judgment by a lawyer who is not attorney of record.
Long story short, I fucking killed 'em. Lived in (inherited) house for 5+ years without rent or taxes (fucking BAC paid those), and they're going to settle for about $10K to me. They get the house, which needs maybe $30K in repairs to be worth maybe $85K, I move to 3 1/2 acres in the country.
Figure I'm up about $30K for no rent for 64 months, plus whatever the settlement is. Repaired my credit, just got another $2K from Citi at 0% interest for 18 months (really? No shit, Sherlock), and have stacks of silver and cash to boot. Fucking morons will end up owning my childhood home, and I'll cry all the way to the creek, where I will lose all that silver in a tragic canoe accident.
I am already drinking heavily and don't know how much longer I can keep typing before I... ah, sheet, the hookers are here.
Later, dudes!
Edit, edit: Have to mention, every signature on every document is a verifiable fraud. I've checked it all out. Un-freaking-believable. I could absolutely slaughter them in court, if, and this is the biggie, if the judge hasn't already been bought. So, I'm taking the settlement. I literally bought a farm with their money. Assholes, every one of them.
And, me, I will be signing a non-disparagement agreement, so I'll be spitting vitriol for a few more days and then have to zipper it. Fuck 'em, filthy banker scum.
They did it again! To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong. An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position.
For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions. The bottom-line is that the higher the market goes the more vulnerable it becomes to a major collapse and sudden downward move. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...