What The Fed Hath Wrought - Bonds/Stock Positioning Most Extreme Since The End Of QE1

Having recently explained how "The Fed has done everything it can to avoid surprising the market," vice-chair Stan Fischer better be right about what happens next. With all the double-edged FedSpeak and CONfidence reiteration - in the face of tsunami-like global deflationary forces only made reflexively worse by a soaring US Dollar - speculators are at extremely short bonds and short VIX (bullish stocks). The last time this happened was the end of QE1...

Aggregating across the entire Treasury future complex, speculators are the most next short since the end of QE1...

 

And now speculators have turned net short VIX once again...

 

The last time the combined levels of short bonds and short VIX were this extreme was as QE1 ended in 2010... This happened next...

 

Charts: Bloomberg