UPDATE: S&P futures are sliding modestly lower after-hours approaching the 100DMA at 1627
As Cramer, Liesman, and Terranova circle-jerked over stocks' algo-driven reaction to the knee-jerk dump after the Fed minutes were released, it was clear that bonds had not drank the same JPY-weakness-from-USD-safety-flow-based carry exuberance that stocks had. After ramping on the back of a VIX/JPY squeeze - all the way to yesterday's late-day cliff-dove levels, stocks collapsed back towards the day's lows (and are below them in the after-market). The Dow is down 6 days in a row - the worst run in almost 14 months (and the biggest 6-day drop in 9 months). Bonds were slammed and really never looked back after the minutes (with the belly +10bps or so!) offering a reality check for anyone gazing dream-like at stocks. Post-minutes, the S&P is -8points, 10Y yields +7bps, USD +0.2%, WTI -0.1%, and gold down a mere $2.
The post-minutes reaction in stocks...
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and the media's mutual masturbation over their premature exuberance...
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but back in the real world...
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7Y yields broke 2.30%
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USD spiked, fell back, then rallied into the close (with AUD weakness evident)
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WTI slid all day (though not much post minutes) with gold and silver noisy but flat post-minutes.
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Futures are closing at the lows of the day (below the initial spike down post minutes)... on heavy volume... critically the flush, pump and dump was a big stop-run from recent lows to the cliff-edge from yesterday's last few minutes (with the JPY weakness mis-intpererted by the algos as carry-on)...
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Hedgers were very active today... early jump into protection provided some of the ammo for the squeeze higher in the post-FOMC ramp... but by the end it was covering in size that drove us lower...
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Charts: Bloomberg