As J-Hole looms and Fed minutes fade, this is all we had…
Post-Fed Minutes, Rate Hike Odds plunged…
And traders bought everything from bonds to stocks and gold to crude… (oil ramped into NYMEX close) as USD dumped
Buy Bonds, Buy Gold, Buy Stocks, Sell USDs… and down the drain goes Fed Cred…
Stocks initially dumped after the Minutes before all ripping higher… despite this…. "during the discussion, several participants commented on a few developments, including potential overvaluation in the market for CRE, the elevated level of equity values relative to expected earnings, and the incentives for investors to reach for yield in an environment of continued low interest rates. "
To ensure The Dow was green for the week…but reality bit into the close and The Dow ended red on the week…
The Market broke shortly after the minutes were unleashed – as VIX was crushed – but VIX was not done with yet as desperation struck into the close to get S&P green above 2178 (we highlighted the BROKEN MARKET segment o fthe day for your entertainment)
But some have blamed today's price action Dennis Gartman – who went short bonds and short oil this morning…
Treasury yields tumbled after Fed Minutes, flattening 5s30s to cycle lows…
But the flatness of the curve didn't worry financials…
The USD Index dumped on Fed Minutes before starting to bounce back…erasing yesterday's Dudley-driven bounce…
Notice the kneejerk run higher in USD Index as the minutes hit (which fits with the seemingly hawkish narrative)…
Commodities were mixed with Gold unch today but silver and copper lower – despite the weak USD – crude ripped…
Notably, Gold ETFs have seen their largest withdrawals this year in the last week…
Charts: Bloomberg
via http://ift.tt/2bo6S7Z Tyler Durden