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Dollar & Crude Dumped, Bonds Pumped As Yellen Jawboning Saves Stocks
Stocks were not impressed at all out of the gate but once Janet started talking, the algos lifted them to the highs (and of course gold was whacked). Crude oil was dumped, along with "sell the news" USDollar longs. Bonds were well bid at the long-end...
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Great, back to hibernation
Site was down for almost an hour ...
Why ?
Mwaahaaaahhaaaaaaaaaa!
https://www.youtube.com/watch?v=iNkrF43SZEU
that freaking mock turtle.
He was too busy drawling, stretching, and fainting in coils.
It's Christmas, Theo. It's the time of miracles. So be of good cheer... [/Hans Gruber, Die Hard]
sing it with uncle Janet : "Short's nuts roasting on an open fire..."
another festivus miracle!
working from home today, USPS guy rang the bell with my new US passport at EXACTLY 2pm, and then ZH goes dark, i'm gonna take that as a sign to GTFO of USSA
yeah. yahoo finance changes (read: totally fucks it up) their page, zh goes dark, at 2 p.m. exactly. it's a god damn conspiracy.
this rate hike is like an ipo. the underwriters are forced to support prices for a few days.
Who needs tangibles like oil when you can have a fistful of FRNs? Well Actually as many digits as a flash drive can handle?
we have acroynm overlap here, because FRN also means Federal Reserve Note, in addition to a Floating Rate Note, which rises and falls in value according to some underlying economic metric, as opposed to the dollar which just dances its random dance.
Need to go back to college and retake some classes nothing makes any sense anymore. Economy is som FUBAR
some people on here predicted that they would modestly hike and that stocks and bonds would go up.
Jawboning works for a day then the bones wear out and reality sets in. Nothing has been fixed just more bullshit on a different day.
Dumped & Pumped in the same sentence as Yellen made me throw up a little.
I'd wait till the press conference is over and Yellen hasn't collapsed or goofed up and speak some truth. We should see the markets goosed as usual today and tomorrow, then back to normal trading, one thing to note is that usually they don't hesitate to pound gold and silver and they're holding up today, not the normal game plan.
This is pretty amazing. Junk bonds have tumbled for weeks, likely due to Fed selling, oil sunk another 5%, yet stocks gained as the Fed said they were done sticking their dick in the market.
If the Fed is going to raise rates they will need to sell at least $500B worth of market securities. So where is the demand to soak up this liquidity? The dumb money is broke and institutions exited the market months ago. The ECB and BoJ say they are reigning in their policy like the Fed. Who is the buyer?
One thing that isn't discussed much is the IMF, the BIS, and World Bank's role as banks and buyers. Is it possible they are using their funds to prop the markets? And what is returning value in this environment of high inflation (ie devaluing currencies) and low rates? Stocks haven't returned anything in 2015, bonds are getting slammed, and oil - the "lifeblood of the economy" has been destroyed.
While stocks remain up today notice the massive selling that occurred at 2:00pm. The Fed and all other banks have driven off the cliff. The idiot consumer is still buying their crap for now - flipping houses, buying cheap consumer goods - but when does it all end? When will the Fed be forced to quit their gold manipulation? WHen will reality come into play?
If it feels like it will never happen, understand that all bubbles pop. It is becoming highly likely that we will wake up one day and all assets will be marked at ZERO. There is no hedge. There never was. Welcome to the New World.
I bought a gold contract yesterday @ 1064 area as the trade was searching for a bottom. I sold it before London opened for about $2-3 profit, thinking it was going to get jammed down, after taking out the "weak longs".
When I woke up this morning I was pretty unhappy I caved in too early... Then I thanked myself, because I knew the DOVES were going to fly a few hours later.
I can't wait to see the half life of removing $800-1000 billion from the markets is? Bill Gross actually made some sense on the Blowhorn interview earlier. He knows how leveraged everything is.
Mr. Yellen make it perfectly clear that she was going to control the "reverse repo" facilities during her Fed. Speak
Unicorns for everyone---Bitchez
Pretty amazing really, rate increases, decreases and no changes all result in the same thing......a rally in stocks. Maybe it has nothing to do with what the FED does, it has to do the fact thay they had a meeting and THAT is all that matters. Why didn't I recognize the pattern years ago!!
Has anybody traded VXX today? That damn thing is going crazy with all this buying.
Gold is totally pathetic...
Gold is 99% HYPE, where money goes to ROT, DECAY, DECLINE - EXCEPT for the peddlers of the shiny lead, doom & apocalypse newsletters, books etc, who ALL profit on the FIAT that they seduce out of the suckers and cult worshipers who fall for their relentless sales pitch.
Just another commodity that at east will be worth something until the secrets of "alchemy" are revealed (sarcasm)
Seriusly it is something that you can sell for what ever type of bartering system is in place. Fiat currency will always have that little thing "faith" backing it up, and in case of economic collapse it will be worth less or nothing. The USD is a strong currency because there is nothing else, so it is not prone to apocalyptic collapse but certainly to catastrophe, and during those times, your physical assets will be worth something more than the fiat currency. It is about security, that is why so many people with fringe thought like it.
"The USD is a strong currency because there is nothing else, so it is not prone to apocalyptic collapse but certainly to catastrophe"
I agree with almost everything that you wrote, very rational and reasonable, except that the USD is NOT EVEN prone to "catastrophe" because every other possible currency or financial asset that holders of USD and USD financial assets might want to go to instead ARE FAR MORE RISKY than the USD and USD assets. China is a black box of hyper debt and autocratic interventions, and the Euro will be lucky to survive the spiraling crisis in Europe.
What other options are there ? NONE
So in fact, if the world hits hard times, then OTHER currencies and assets will SELL OFF and capital will seek safety in the USD and USD assets, so these are EVEN SAFER in spite of all the problems in the USA.
Also amazing that the SnP is UP over 80 points in three days (from the low of 1993 Monday morning)....that would be a good indication of "buy the rumor, never sell' and 'buy the news and never sell' and of course, 'buy the news conference and never sell'.......yes, quite amazing.
I'm Ms. Yellen the "Felon".
https://www.youtube.com/watch?v=yl60KfgM0Fc