Dollar Dives To 6-Week Lows As Fed Fears Market 'Partying Like Its 1999'

1999-like parties are breaking out everywhere across financial markets...

First things first, US Financials Conditions are partying like its way easier than 1999...

 

The Philly Semiconductor index is partying like its 1999...

 

But what happens next? Meltup time?

 

S&P 500 Valuations are partying like its 1999...

The spread between German and US bond yields is partying like its 1999...

 

And the US Treasury curve is partying like its 1999...

*  *  *

The Fed Minutes spooked markets a bit today - USD down, gold, stocks, and bonds unch

 

On the day, The Dow & S&P were joined late on by Small Caps in the red (but the Dow was worst, Trannies were best)

 

VIX ended modestly higher but still below 10...

 

Another day, another short-squeeze...

 

This is now the biggest short squeeze since the election...

 

And before we leave stockland, remember CHF-Solutions...

 

High yield bond prices ralied once again - almost back to their 200DMA...

 

Treasuries rallies across the curve today (but for a change the short-end outperformed the long-end - 2Y -4.5bps vs 30Y -1.5bps)

 

Quite a significant reversal today in yields after bond weakness overnight suddenly reversed this morning and then extended after the dovish FOMC...

 

Stocks and bonds remain notably decoupled this week...

 

The Dollar Index extended its losses after FOMC Minutes. Today is the worst day for the dollar index since Sept 7th...

 

However, stocks remain decoupled from FX carry...

 

Bitcoin rallied once again today but failed to make a new record high...

NOTE the interest patterm starting to develop intraday

 

WTI rallied, bouncing back from disappointing inventory data and RBOB leaked lower...

 

Gold and Silver gained as the dollar drooped - Gold and silver  surged back above its 50- and 100DMA

Comments

buzzsaw99 Quantum Bunk Wed, 11/22/2017 - 16:21 Permalink

i am a ust & usd bull against all comers except oil and have never been in the closet about it.  gold, bitcoin, eur, jpy, all are trash in my eyes.  the only two bad calls i've made in all the years i've been here have come in 2017.  i am holding my ground and doubling down in 2018.  call me crazy, mock if you must, but if you choose to do so please come back later and kiss my mutant brownie bitchez if i'm right.

In reply to by Quantum Bunk

buzzsaw99 nope-1004 Wed, 11/22/2017 - 16:38 Permalink

well the usd isn't a slam dunk, that's for sure.  it is just my considered opinion that the rest of the world has gone full retard while the fed will restrain itself to only 3/4 retard.  my how far we've all fallen.  we argue about which central banker or world tyrant will do what stupid thing next and then make bets on it.

In reply to by nope-1004

Glassport buzzsaw99 Wed, 11/22/2017 - 20:36 Permalink

Part of my problem is my ignorance of what you're saying.  I grasp the concept of strong dollar versus weak dollar (I THINK I do at least), but honestly I haven't a clue as to how to make money on currencies.  That's one of the reasons I came to ZH a long time ago.  To learn from the likes of yourself, Yen Cross and others.  But lately.....well, you know, there's no decent conversations about things like this.  A lot of political mumbo jumbo, PC crap and the like.  Maybe fundamentals are dead and the only thing for the great unwashed like me is momo and a prayer...

In reply to by buzzsaw99

D.r. Funk Wed, 11/22/2017 - 16:16 Permalink

How about an old entry for Holiday Reading, To piss off sordid-creatures, Sordid creatures need not apply- - - -The inflection in Feb 16 was the hidden hand. Glaringly, Watching intraday. (500 pt reversal, following what to that point was a monthlong uninterfered cascading) Other online bloggers described it that way too. Meaning over-and-above detectable, a clear decision (by whoever the power division) on the multiweek drop#1 That moment itself heavily-corroborated a manipulating force under the indexes. Of course giving credence, but the notion that someone wasn't able to guide the indexes if they wanted/needed? Index programming was surmised very early on by me, 2013, probably others.#2 Time after time: corroborating observations and movements/circumstances/contexts, blah blah, persisted following 13. To enumerate.#3 Time after time The movements followed political narratives. Was so obvious! Feb 16. Uh hello election? Mid Feb 16 just around the time Dt actually broke through. A collapsing market would elect an insurgent? A steady market would elect Hrc?If one can absorb this with critical thinking and discussion. It's amazingly obvious how many of you have missed the glaring narratives, cause-effects and market-index control bullshit. "ad hoc reasoning" Yeah it's obvious something is moving the indexes separate from headlines/reality (k? duh?) "wasnt pricing in trump victory and tax relief" Yeah, the so-called, trump rally doesn't comport to being so! (uh, obvious, amazing how many don't have critical thinking) Statements like that, directly--corrorborate a paradox on trump rally-notion and those statements come up over and over and over. I said, it was fishy, within "days", of Nov 9 and magically 8 months 10 months 11 months later, highly suggestive of that. Buttresses and feedsback (on the strength) of my own assertion record

Keltner Channel Surf D.r. Funk Wed, 11/22/2017 - 17:21 Permalink

Not sure I’ve ever seen such verbose, unintelligible twaddle from such a rank amateur passing as a great ‘seer’.  If one does something conspiracy-freaks rarely do – pull up a very long term chart, namely the Monthly – on the Dow, then it’s clear that in Feb ‘16 it 'simply' bounced from the Simple Monthly 50MA for the 3rd time, exactly as it did the month before, and again back in August of 2015. Taking a slightly wider view, it was nothing more than a similar ‘pullback’ in an uninterrupted run starting in 2009 which saw the SAME EXACT flutter down to the monthly 50 & 150, also with 3 hits, in Aug – October of 2011. To say that a bounce from a clearly visible major moving average proves a “manipulating force” which, as implied, would have to go against major buy-side funds trying to dump (in fact, they were precisely the buying ‘force’ in question, as quarterly reports prove) would require perhaps 10-15,000 programmers/traders scattered across the globe, working in tandem to serve a ‘master overlord’ for nearly a decade, without one of them being caught, or tattling to the WSJ, who would pay any peon with the story a few million bucks.  Not only is this sort of belief puerile, reductionist and childish, but likely assumes a consortium of central and Big bankers had the organizational skills to pull it off.  Not only does EVERY BIT OF EVIDENCE point to a Fed misunderstanding and being whipsawed by mean-reversion (the shorter-term force you fail to understand), big banks meager trading profits (not to mention Whale losses) suggest they are hardly capable of such a coordinated ruse.  In other words, stick to Star Wars movies, your fantasies are really rather droll.(Hint:  conspiracies aren't needed when big funds needing to payout pensioners don't believe they'll see a 3%+ 10-yr anytime soon (as today's minutes suggest), and that QE or NIRP are 'tools' ever at the ready.  This hasn't changed since 2009, unfortunately ...) 

In reply to by D.r. Funk

zxbkajbs91bckz… Wed, 11/22/2017 - 18:10 Permalink

I met a man who claims to summon UFOs based on the concentration of Bitcoin mining power. Hidden wisdom has been imparted by ritualistic worship of the Thule Sonnenrad. Central bank.