Erasing Friday's gains (and the well-documented VIX-driven melt-up into the close [4]), S&P 500 futures have opened down 4.5 points (against JPY-carry for now), Treasuries are indicated 4-5bps higher in yield, and Gold is opening down 0.4%. Not in itself a large move but perhaps indicative of some concerns that Hilsenrath is on to something [5] and the punchbowl is being ever so gradually pulled away (though, we suspect it is only a matter of time before this article is spun in a bullish light, suggesting that the Fed still does not have a firm timeline in mind, which by implication is bullish - no news is good news - and much more jawboning has to come before the real tapering talk begins). In the meantime, we are sure the clarion call to Buy-The-Feding-Dip will be heard and in the interest of balance, we offer some insight into 'valuations'.
S&P 500 futures open -4.5pts... erasing the closing ramp and Friday gains...
[6]
and Bonds are being sold too...
[7]
long way to go for both from when the disconnect began...
[8]
Which one are you going to believe? US Macro vs SPX and 10Y from the 'disconnect' above
[9]
But stocks are cheap I tell you...
[10]
(h/t @Not_Jim_Cramer)