Looking at all non-equity asset classes, one would be left with the impression that the December taper is an increasingly likely outcome. Sure enough - bonds sold off again, and have been selling off constistently since the FOMC announcement. In fact they are poised to close at 2.62%, the highest yield since October 22.
[8]
The dollar, inversely, ramped higher on both EUR woes and the expectation that its destruction may "taper" in the near future.
[9]
As expected, gold did the opposite of the dollar, and Gartman's latest reco, and continued its sell off for the third day in a row:
[10]
Thus the taper trade continued for the second day in a row in all asset classes, except stocks of course. Despite breifly dipping into the red shortly after today's conflicting manufacturing reports, the late day ramp was once again on location, and helped push ES nearly to a new intraday high in the minutes before the close, before a shakedown took place just after the close, sending ES sliding after hours, and wiping out the entire 3:30 pm ramp in seconds.
It can be seen just where the rug gets pulled moments after the 4:00 pm close of trade.
[11]
And so we close another week of mad fun with Mr. Chairman's, soon to be Mr. Chairwoman's manipulated, frothy, bubbly, markets.
Finally, speaking of bubbly frothyness, here is a smattering of the recent headlines confirming just that.
- Oct. 31, Risk of London Property Bubble Is Increasing: Moody’s Analytics
- Oct. 30, Barclays CEO Reassured Regulators ‘Are On’ Housing Bubble Risk
- Oct. 30, Malaysia Has Taken Steps to Avert Property Bubble: Zeti
- Oct. 29, BlackRock’s Fink Says There Are ‘Bubble-Like Markets Again’
- Oct. 29, Dublin Home Prices Rise Most Since Crash as ‘Froth’ Signs Return
- Oct. 23, Central Bankers Will Fail Again to Deflate Bubbles: SG’s Edwards
- Oct. 23, Swedish Banks Lash Out at Government as Housing Market Overheats
"This time is different."