The Deer Returns On Fears Bernanke's Training Wheels Are Coming Off

One word can describe performance across all asset classes today: clobbered. Stocks tumble, Commodities slide and Bonds crash, with the 5 year suffering the biggest intraday percentage jump in yields... ever! And why? Because Bernanke confirmed what everyone thought they knew, namely that the Fed will start tapering (how else can the Fed match the reduction in gross Treasury issuance at auction without taking over the private market entirely) eventually. Or at least that's what the market read between the Chairman's lines. In reality, Bernanke himself is more dazed and confused than anyone out there and just like Europe, is making it up one day at a time.



Did the Fed's extraordinary actions increase or decrease realized vol?




leaving the S&P 500 at the lows of David Tepper Day...


Commodities were a one way street...


FX markets exploded with the USD bid (and if the bulls think carry will save the day - think again - this kind of vol means LESS carry not more)...


The Dow saw its 7th day of +/-100 p[oint days - first time since oct 11

Charts: Bloomberg and Capital Context


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