Rate Hike Hammers Dollar; Stocks, Bonds, & Bullion Soar

Tyler Durden's picture

Before we start, we want to point out that if the Atlanta Fed GDPNOW forecast of 0.9% for Q1 is correct, this will be the weakest economic backdrop for the economy for a rate hike since 1980!! (according to Bloomberg data).


All we can say is...


The reaction post-Fed was dramatic to say the least - the Dollar dumped and bonds, stocks, and bullion jumped higher in price...


VIX flash-crashed as The Fed statement hit...


The Dollar plunged to 6 week lows...this is the biggest daily drop in the Bloomberg dollar index since July 29th...


Emerging Market FX soared after The Fed - the best day since Feb 2016...


The Treasury yield curve steepened dramatically...


Gold outperformed post-Fed, as Bank stocks sank on the day...


Stocks all gained post-Fed, with Small Caps surging...


Thanks to a big short squeeze...


AUD is the big winner on the week as the USD got pounded...


Treasury yields remain higher since the first Fed hike in 2015 but notably (20bps flatter)...


Yields all tumbled across the curve after the rate-hike...



Dollar weakness sent commodities higher but they all remain lower on the month...


For now it appears what matters to The Fed is not 'hard' real economic data but 'soft' survey and confidence data...


Finally, we note that Goldman Sachs is down 8 straight days...

It has not suffered a longer losing streak since May 2008

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Francis Marx's picture

See...all those people who voted me down yesterday for calling a rally eat turkey. haha

Stackers's picture

Really dont understand the Dollar drop with a rate hike. Bizzaro World strikes again.

Bryan's picture

The hike was already totally priced in (100% certainty, remember?).  So the USD bulls were looking for 4 hikes in 2017 and only got three.  Therefore... sell the USD I guess.

Snaffew's picture

meh...they'll jack the dollar back up later this week or next.  just for the fuck of it---That's the only reason for all stocks to do what they do---just for the fuck of it!  There is never any fundamental reason for the markets to rise like this---we are in lala land and have been for decades now.  S&P p/e of 30 is the new 14

BullyBearish's picture

fed day = Big Dick Day...all you got to know...they could raise it 500 BPs and the day would still be green...

glenlloyd's picture

Yeah, 25bp rise in rates, embarassing, truly embarassing. Here we are 11 years after the 'eruption' and same old same old.

8774_44887's picture
8774_44887 (not verified) glenlloyd Mar 15, 2017 4:59 PM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

Giant Meteor's picture

"I'm making over $7k a month working part time." And you just want to share your secret with the world!?

What a fucking hunanitarian, you fucking scam bot you ..

zagzigga's picture

Plus the increase is a piddly one quarter of one percent. 

BigFatUglyBubble's picture

I'm looking forward to hearing Schiff's take on his podcast.

deth's picture

I'd like to hear Irwin Schiff's take.

The Real Tony's picture

The samew apples to DOW 21,000 when the DOW today should be no higher than 4,500.

Bay Area Guy's picture

Thank you for asking. It seemed counter-intuitive to me too.

Unreliable Narrator's picture

Gartman said he was going short US stocks, so a rise was assured.

dasein211's picture

Bingo!!! That's enough right there!!

Giant Meteor's picture

No worries, he'll be long tomorrow ..

Look out below ..

cowdiddly's picture

That was like the kid in the candy store trade today. i did essentially the same just different.

shizzledizzle's picture

JNUG MAR 17 2017 6.00 CALL TODAY'S CHANGE  +1.40 (466.67%)  SHAZAM!


35 years of bullish rate cuts. How many years of bullish rate hikes?

Kaiser Sousa's picture

well hope u all enjoyed todays show brought 2 u courtesy of the completely trapped totally NOT "Federal" Reserve Bank...

thats all i got...

on my way into Oakland to pick up my 1/2oz Gold Maple Leaf...



ps: for those who have show concern - mom's is coming home next Weds...i had a nuff of that Rehab Facility shit...


FreeShitter's picture

Nice bro....hope she gets well soon.

Kaiser Sousa's picture

ready for the challenge...

will do my best to push here along...

family is a wonderfull thing man...

should always b at the top of the list...

especially in these times...


FreeShitter's picture

I agree. I lost my dad last Oct, miss him everyday..

Kaiser Sousa's picture

he's still there...

hold him in mind and spirit...

thats what i do with my pops who passed of cancer a decade ago..

count the blessings man...

FreeShitter's picture

I do every day....was a true warrior in this world and will be in Heaven for sure.

Consuelo's picture



On your way to Oakland...?


Somewhere away from the check cashing place on Telegraph avenue, i surely hope...?





RawPawg's picture

Awesome News On The Mom Front

if for nothing else...Your Heart Iis Golden

Namaste(I'm A God Believer,but i also believe in My Soul Honours your Soul) 

Kaiser Sousa's picture

what up RP...

thanks always for the kind sentiments..

be well...

Giant Meteor's picture

Well done. Best to you both!

BrutusTheBomber's picture

Well there goes that recovery.

Dr. Magoo's picture

And do you want the zip code? So you can key it in to that GPS you don't have

ejmoosa's picture

Janet said the GDP data was noisy...nothing to worry about.  And she said we should look at several quarters not just one...So I am guessing that she picked some quarters not in sequence, as from other years...just saying.

Ricki13th's picture

It must be the keynesian meth oops I mean "math" they use over at the fed.

izzee's picture

the Atlanta Fed GDPNOW forecast of 0.9% for Q1 is correct, this will be the weakest economic backdrop for the economy for a rate hike since 1980!! (according to Bloomberg data).

Yes I was alive back then...late 20's about to cross that line where I could no longer be trusted - aka 30. I wanted to buy a house. Mortgage rates were in the midish TEENS

This is NOT like 1980 by any streach of the imagination

Snaffew's picture

yes, but I bet your school and property taxes were significantly lower...a 250k house in NY 10 miles from albany in farm country and the taxes are $12,500 a year.  that's over $1k a month just for state taxes to own your home---I fucking heart NY!

blueRidgeBoy's picture

You should feel privileged that the state allows you to own so much - your home is simply an asset they hold off the books (and on yours). Seems the least you could do is pay your fair share.

jmack's picture

But at least you can sell your drilling rights to producers to help pay for those taxes....oh wait, you live in NY state, lol.  NYC values.

We Are The Priests's picture

Back out Healthcare and GDP is in negative territory.

spicedune's picture
spicedune (not verified) Mar 15, 2017 3:09 PM

Apparently the Fed tried to shut down www.inflation.co....guess they couldnt

wmbz's picture

None of this rate shit mattters, stawks always go up!

Barney08's picture

What he said bitchez

JTimchenko's picture

The movement in gold and, probably, everything else has NOTHING to do with rate hikes or reductions. It is all about market manipulaton. To know what is really going on, read this.


Also, highly recommended are all the preceding articles on the same website, starting with the one published just after the election of Donald Trump. The price and timing accuracy has been simply amazing, and you don't need to "subscribe" to anything to read it all...

jamesmmu's picture
This Nobel Laureate Considers The Market As Highly Overpriced – A Worrisome Sign For The Trump Rally


NoWayJose's picture

I expect a number a new shorts will be taught a lesson very soon when we get a whipsaw reversal.

ThanksIwillHaveAnother's picture

The rate increases are smoke and mirrors.  Nothing flows thru to savers like it should and FED balance sheet is the same.