As we "forecast" this morning (and a month ago – if our extrapolation of the Fed's balance sheet is correct – i.e. no Taper – that the S&P 500 Fed L-A-B-I-A should be around 1800 by year-end), the Fed can be proud that they managed (remember it "costs" $3.25bn in POMO to create 1 S&P 500 point) to get the key US equity index – the S&P 500 – near the critical 1,800 level…
K-Hen's PT for today: 1801
— zerohedge (@zerohedge) November 15, 2013
Mission (Almost) Accomplished…
Cue Tom Lee… need to re-raise that year-end target again stat… (of course there is always the real "Bernanke" plan)
The last four weeks have seen the S&P 500 rise 4%, IG credit spreads drop 1bps, and HY credit spreads +6bps (as supply overwhelms a saturated credit market)…
Off the debt-ceiling lows… indices are unstoppable… (Trannies +12.5%!)
With every dip in any sector bid to infinity… (Discretionary and Industrials +11%!!)
Gold made it back to unchanged on the week thanks the Yellenomics…
Treasuries rallied 5-8bps on the week…
FX markets saw USD weakness all day… ending the week -0.45% (and -0.9% against the EUR)…
Investors appeared to protecting some gains during day (and it was OPEX) but VIX was levered into the close as they tried to tag 1800..
Charts: Bloomberg
Bonus Chart: It seems the bubble in "bubble" speak has been a lot bubblier in the past…
Bonus Bonus Chart: This is what a bubble looks like…
Bonus Bonus Chart: You ain't seen nothing yet… NKY is up 1480 points in 6 days…
     |
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/81CjypSKmzA/story01.htm Tyler Durden