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Dow Drops 170 Points From Open As 2Y Yield Surges To Highest Since May 2010
But... "priced in"? "Non-Event"?
2Y yields are within a smidge of 1.00% for the first time since May 2010...
As The Dow dumps off opening highs into the red for the day...
But what do Treasuries know that stocks don't...
Charts: Bloomberg
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Courtesy Armstrong:
While everyone seems to place a huge question of will the Fed raise rates or not, the markets have factored in the rate rise already for sometime.
THE FUCKIGN ONE DAY I WANT THE STOCKS TO STAY GREEN. COME ON, MUST HOLD UNTIL 2PM!
Rut Roh Reorge......
>> The Most Important Woman in the World <<
Funny to think that the Fed decision “to hike or not to hike, that is the question” dependent on data from the last few hours.
I still tend to think there might be a rip up in store for everyone.
The reason why it wasn't fully priced in is because there was real money players who gave her a high % chance of folding .....again.
None of you are on the pre-relase list for Fed minutes like I am? Shit, I had confirmation they were going to do the 25 bps hike at 8am this morning when they emailed it to me.
All you have to do is fill out a job application, put your email where you normally would put your name and put "Goldman Sachs" in all other boxes on the page.
I would have told y'all how to do this earlier but I thought everyone knew already.
I get CCed on the Goldman Sachs email to Yellen telling her what to do.
BS. Everyone knows GS sends the orders to the FED. They dont receive them.
+100 for high quality snark........
All is well, it will be green shoots for everyone.
Break is over, back onto your heads.
A disturbance in The Force?
...as if millions of [retail investor ] voices suddenly cried out in terror and were suddenly silenced
Paging PPT, Paging PPT.....
treasurys know that one can still raise a substantial amount cash selling treasurys. trying to raise a lot of cash selling stocks, well, that might be a problem. besides, one must be ready to btfd in equities. suck it up and pump it up! [/colonel potter]
Well...that kinda escalated now didnt it?
it is irrelevant what they do .... They have f@cked things up so much this market is going to be down 80%within a couple of years.
Always fun to watch the reaction.
they went full retard
Probably just "those in the know" offloading ahead of a train wreck.
Buy the 2-yr, and buy VIX.
Let's get it up to 5%-6%, which would be on the lower end of normalized.
They have not factored in the trajectory of rates, however. And overly optimistic have equity markets been on pricing in a rate hike to the same levels an entire year ago. Unless you look at the DXY which has gone up +10%, which would imply less arnings per share for the markets. Reality check is that it must come down by the same amount or less to provide the dollar boost. Now how they aim to do this with rising rates can only mean one thing. Equities must deflate. Its all a matter of when now.
Irrational exuberance? I thought the economy was remarkably robust?
The real question is why didn't they raise in October? Some of their buddies hadn't been on the right side of the trade yet.
170 pt dump not nearly enough to stop a hike...
Interesting, gold and silver are up this morning as oil gets obliterated. WTF is that all about?
Nobody understands gold prices and I don't really pretend to understand them either.” .
- Bernocchio 2013
There, he told you how to think. Now stop analyzing how the banks are goosing it 3% this morning, then flipping short 10 mins before the Fed meeting for another 5% on the downside. It's all in a days work for the corrupt financial sector.
Amazingly, the Dow, NAZ and S&P are all right at (or pretty damn close) both their 40 and 200-day MAs.
In other words, the entire market will be essentially flat going into the FOMC announcement. No clues for anyone, except that move up in PMs this morning.
Putting on my best guessing hat - which stragely resembles a dunce cap - I'd say the 0.25% rate hike is all but a done deal. The Fed has gone too far and they know it.
This is really a now-or-never condition, and they must go with NOW, because NEVER doesn't really mean never. It means they will have to do this at some point. There will be significant pain ahead, but only for those who are highly leveraged, over-indebted or just plain stupid.
Everyone has had seven years to prepare for this moment. If you haven't gotten a whiff of what's coming, you are not to be pitied. You will be skull-fucked and disposed of by the gnarly beast of deflation.
That's my take.
Final note: Yesterday, I reiterated my call from about 2 years ago that silver would see $12. Somebody else on here said $8.25 was the target, or bottom. I'm fine with that. Will be buying at $12 and buying even more if and when it ever gets to $8. Good luck to all.
Dump? 170 points is less than 1%. Much hyperbole.
It seems quite elementary when you think about it. Fed will raise today .25% then early next year lower with some added QE. They have to instill some panic that rates are going up but can't wait to long for the reults of their stupidity to shine through.