Post-FOMC Market Reaction

Equities tumbled but Gold/Silver and Treasuries were the hardest hit as the potential reality of lower chance of more massive LSAPs was evident in the FOMC minutes. As we have argued for weeks now, the Fed is cornered and is unable to enact QE3 without a much more significant drop in markets and implicitly the economy. We assume now that the sell-side will refocus its efforts on telling us all just how bad the economic picture really is...



Gold is holding $1650 for now

30Y/10Y Treasuries snapped back to reconnect with stocks - back to yesterday's high yields of the day for now.

EURUSD back to one-week lows as DXY ramps up...


Stocks are holding at yesterday's lows (for now) and converging back down to credit's reality

The dollar is accelerating higher as we post and stocks heading to yesterday's lows.


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