Post-FOMC Market Reaction

Tyler Durden's picture


Equities tumbled but Gold/Silver and Treasuries were the hardest hit as the potential reality of lower chance of more massive LSAPs was evident in the FOMC minutes. As we have argued for weeks now, the Fed is cornered and is unable to enact QE3 without a much more significant drop in markets and implicitly the economy. We assume now that the sell-side will refocus its efforts on telling us all just how bad the economic picture really is...



Gold is holding $1650 for now

30Y/10Y Treasuries snapped back to reconnect with stocks - back to yesterday's high yields of the day for now.

EURUSD back to one-week lows as DXY ramps up...


Stocks are holding at yesterday's lows (for now) and converging back down to credit's reality

The dollar is accelerating higher as we post and stocks heading to yesterday's lows.

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Tue, 04/03/2012 - 14:16 | 2313828 asteroids
asteroids's picture

Context gave you a clue yesterday if you believed it. The FED is sitting on its hand and will watch. Expect no help from them until after the election. It's going to be an interesting year.

Tue, 04/03/2012 - 14:23 | 2313887 Mark Carney
Mark Carney's picture

Was wondering what happened, just finished lunch and everything was down (weird, I KNOW!)


Thought someone farted....

Tue, 04/03/2012 - 14:26 | 2313900 tallen
Tue, 04/03/2012 - 14:35 | 2313953 fonestar
fonestar's picture

Gold and silver are down or paper gold and paper silver attacked?

I'm sure someone just had a few million ounces of phyzz in storage, got frustrated that there is no more easing around the corner and decided to liquidate.  Pretty simple and someone will drop by with their armoured car later to pick it up.

Tue, 04/03/2012 - 14:45 | 2313996 PaperBear
PaperBear's picture

their paper car.

Tue, 04/03/2012 - 15:37 | 2314108 nope-1004
nope-1004's picture

Just an excuse to beat down PM's.

Ponder this:  If PM's are such a bad investment, are held for tradition, are a barbaric relic, and less than 1% own them, why such a heavy sell off on gov't released propaganda days like this?  Who's selling - if no one is buying?

Kinda obvious.  It's a rigged, fascist economy.  We hear how gold is "tradition" and used in jewellery.  So are tradition-collectors following the FOMC's every word?  LOL.

This country is in a pickle.  Western banks brought the world with them.  Now to save themsevles and cover the mony laundering, they need to meddle in the metals.  We are past repair and going down quickly.  Obama-care.... lol.  More like Obama-crisis.


Tue, 04/03/2012 - 15:42 | 2314300 oddjob
oddjob's picture

Silver 'crashed' to where it was 24 hrs ago...ouch?

Tue, 04/03/2012 - 17:23 | 2314635 BoNeSxxx
BoNeSxxx's picture

And tomorrow it will ramp again on vapors... SSDD.

Wed, 04/04/2012 - 11:23 | 2316473 WhiteNight123129
WhiteNight123129's picture

Stop measuring a commodity money with paper, measure Gold against silver, barley, Palm oil, SUgar, Corn ect.... Paper is irrelevant at this point.


Tue, 04/03/2012 - 15:14 | 2314155 FedBunny
FedBunny's picture

As long as you keep it frozen, jyzz in storage beats phyzz any day.

Tue, 04/03/2012 - 15:19 | 2314186 LowProfile
LowProfile's picture


I'm sure someone just had a few million ounces of phyzz in storage, got frustrated that there is no more easing around the corner and decided to liquidate.  Pretty simple and someone will drop by with their armoured car later to pick it up.



Fixed it.

Tue, 04/03/2012 - 14:56 | 2314057 SheepDog-One
SheepDog-One's picture

Right but also remember if Goldman said buy, they were selling.

Tue, 04/03/2012 - 15:40 | 2314290 trampstamp
trampstamp's picture

This looks like a way to produce another short squeeze and make the market go higher. Get all the bears on then trap them.

Tue, 04/03/2012 - 14:31 | 2313925 ACP
ACP's picture

Nah, just wait for that annual crash to happen, and Brian P Sack will get another round.

Tue, 04/03/2012 - 14:38 | 2313945 DormRoom
DormRoom's picture

Fed handed over printing to ECB.  ECB prints.  hands it back to the FED. hands it to BOJ. hands it back to FED. hands it to ECB.


Nuthin but a circle jerk among the reserve currency and its rival.  BRIC dollar here we come.


The triangular structure is about to undermined.  Also a nice match up in regional power rivalries.


Tue, 04/03/2012 - 14:56 | 2314052 SheepDog-One
SheepDog-One's picture

Yes they can print all they want, but at some point they have to sell it off to someone. If they cant, theyre left holding the bag themselves, and it looks like they cant sell.

Tue, 04/03/2012 - 15:46 | 2314316 Red Raspberry
Red Raspberry's picture

Not a triangle but a square with an open bottom.  Gold should be there on the bottom to shore it all up but they leased it all out.....

Tue, 04/03/2012 - 15:46 | 2314317 Red Raspberry
Red Raspberry's picture

Not a triangle but a square with an open bottom.  Gold should be there on the bottom to shore it all up but they leased it all out.....

Tue, 04/03/2012 - 16:31 | 2314443 greensnacks
greensnacks's picture


Poor China. They try and dump USD and the Fed weakens the Euro. My guess is that next week, the BOJ will do the same with the Yen. China's monetary policy to peg to the dollar is just driving up inflation for themselves. Maybe a BRIC dollar will be their escape.

Tue, 04/03/2012 - 14:21 | 2313839 CClarity
CClarity's picture

Are we ever going back to unmanipulated markets where price action reflects both technicals and fundamentals?

Highly accomodative monetary policy likely to be warranted through late 2014!!! 2+ more years?   When oh when can we take the pain and really get back on track?  

Tue, 04/03/2012 - 14:30 | 2313921 Dre4dwolf
Dre4dwolf's picture

Not until this system fails and it takes the blame.


The markers are so heavily manipulated/hinge on central banking for survival that its sad..... all these corporations need to go bust in order for people to come to a harsh realization that their entire lifes worth of financial decisions are based on bullshit + luck.

Tue, 04/03/2012 - 15:01 | 2314081 MFL8240
MFL8240's picture

NO, we will not! 

Tue, 04/03/2012 - 14:16 | 2313841 Cdad
Cdad's picture

Get on your knees and beg, Wall Street, for more...more...more free money!  About now, the criminal syndicate might take a moment to consider how it debauched entirely the US equity market...and capital formation.

Way to go Wall Street!

Tue, 04/03/2012 - 14:31 | 2313928 Cdad
Cdad's picture

Okay...that's 27 minutes of sheer agony for the members of the criminal syndicate financial services firms.  It must now be time to start talking about why QE3 will be coming anyway.  

Criminal amongst yourselves on the BlowHorn [CNBC].

Tue, 04/03/2012 - 15:08 | 2314107 caconhma
caconhma's picture

FED will print. There is just no way around unless there will be an economic collapse with bansters hanging on trees.

Tue, 04/03/2012 - 14:58 | 2314064 spinone
spinone's picture

They need their wall street campaign contributions. Gotta squeeze em. Who run barter town?

Tue, 04/03/2012 - 14:16 | 2313842 Chief KnocAHoma
Chief KnocAHoma's picture

Who elected this guy?

Tue, 04/03/2012 - 14:16 | 2313846 TradingJoe
TradingJoe's picture

fellas, beware of the 2:15ish buy programms!!!

Tue, 04/03/2012 - 14:40 | 2313973 SheepDog-One
SheepDog-One's picture

Let em keep buying, and whining about no retail...FINE with me! Every time they buy they dig a deeper hole. 'Boo hoo hoo wheres retail to sell our stocks to?' lol

Tue, 04/03/2012 - 14:18 | 2313856 nicktd
nicktd's picture

eurusd is also tanking

Tue, 04/03/2012 - 14:21 | 2313875 Cdad
Cdad's picture

Technically, the door to 1.302 is now swung wide open.

Tue, 04/03/2012 - 14:19 | 2313858 navy62802
navy62802's picture

Fuck me. Gold's getting HAMMERED. If it keeps falling off a cliff like this, I might snatch up some more.

Tue, 04/03/2012 - 14:36 | 2313955 Strider52
Strider52's picture

navy: fuck me too. If silver hits below 32, I got some truck-loading to do, especially after last weekends boat-scuttle.

Tue, 04/03/2012 - 14:51 | 2314033 slyhill
slyhill's picture

uhhhm, im guessin' you were sunk by those awsome torpedos?

Wed, 04/04/2012 - 11:24 | 2316486 WhiteNight123129
WhiteNight123129's picture

Not a chance in a million people are going to sell their PMs right now. If I see Grugman or Roubini come out and yell victory of paper over PMs that is when you need to buy ladies and gents.

Tue, 04/03/2012 - 14:41 | 2313979 SheepDog-One
SheepDog-One's picture

I dont care at all about advertised PM prices in dollars....its all for after the dollar becomes worthless and with the BRIC's agreements this week, that is far closer.

Tue, 04/03/2012 - 14:19 | 2313859 Tsar Pointless
Tsar Pointless's picture

I'm conflicted.

The kid in me says "Bullish!", but the adult in me says "Feh. I stopped worrying about the end of the world long ago. Strangely, I feel fine."

Just enjoy the world party, here on this ship of fools.

Tue, 04/03/2012 - 14:19 | 2313865 apberusdisvet
apberusdisvet's picture

A schitzoid market ruled by psychopaths, governed by fascists, and regulated by the deaf, dumb and blind.

nothing to see here; business as usual.

Tue, 04/03/2012 - 14:19 | 2313866 -1Delta
-1Delta's picture

"We assume now that the sell-side will refocus its efforts on telling us all just how bad the economic picture really is..."



Tue, 04/03/2012 - 14:43 | 2313989 SheepDog-One
SheepDog-One's picture

Manic/depressive schizo markets.....YEA that should make bankrupt retail real confident to buy stocks, apprently with food stamps, I dont know!

Tue, 04/03/2012 - 14:28 | 2313874 tallen
tallen's picture

Looks like Goldman is going to get stopped out on Gold.. Hahhahaha (WHEEZE) HAHAHAHA

Tue, 04/03/2012 - 14:33 | 2313932 nope-1004
nope-1004's picture

Assuming they actually did what they advised which, as Tyler has shown, is not true.  They likely went short and made a bundle today at the expense of their clients.

Proves why satan can be called "devilish".


Tue, 04/03/2012 - 14:21 | 2313877 fonzannoon
fonzannoon's picture

People on here can be funny. Anyone who actually believes that they are done "stimulating" the market is nuts. A few points came off. Maybe we have a sub 200 point day like a week ago. Then on Friday when the Jobs report misses people will say "hmmm the fed did say they will come in if the data drops off"...and it goes on and on.

Tue, 04/03/2012 - 14:23 | 2313881 alfred b.
alfred b.'s picture


   The Fed is on a fool's errand!    They're bluffing....QE3 will come to pass.   In the end , they will save the banking cartel.



Tue, 04/03/2012 - 14:32 | 2313933 SheepDog-One
SheepDog-One's picture

Money printing does nothing, its a 1-sided equation, unless you have someone to buy it off your hands its just pulling your weenie. ALL BS, thats why theyre all whining for 'retail' to come buy, dont believe their lies.

Tue, 04/03/2012 - 14:35 | 2313948 walküre
walküre's picture

The Fed is very safe and comfortable. They don't need to worry about anybody else including their parasitic cousins. The Fed can crash the market, raise rates and riding into the sunset without a modicum of worries.

The only thing that would get the Fed worried is if armed guerilla forces were to blow up their buildings.

Tue, 04/03/2012 - 14:23 | 2313883 Bastiat009
Bastiat009's picture

Hey Tyler, instead of saying you're always right, you must admit that the Fed has been clear and straightforward. QE3 is not happening. The banks are doing fine. The ECB has taken over and is providing the cash needed to maintain the bankers' lifestyle. Everything is fine.

Tue, 04/03/2012 - 14:33 | 2313942 SheepDog-One
SheepDog-One's picture

With no one to sell their bubble FED stocks to, the bankers are screwed here. Dont believe the hype, they miscalculated, went for the money printing and fake bubble market party, and now are stuck with no one at all to sell to.

Tue, 04/03/2012 - 14:36 | 2313959 walküre
walküre's picture

Generally I would agree. But are we sure they actually need to sell the paper crap to someone? They're pretty comfortable and can pay all the bills. The calls aren't coming.

Tue, 04/03/2012 - 14:38 | 2313967 Bastiat009
Bastiat009's picture

I agree with walkure. Banks are doing fine. Gold is not really safe.

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