Stocks Fading As Hilsenrath Kills Hope Taper To Taper, EMs Currencies Sliding

It was all going so well. It appeared the “market” had decided that this was not weather-related (as we showed) but real weakness and that real weakness can mean only one thing – a fickle Fed re-primes the pump by un-tapering the taper. However, as we noted last night, it is Jon Hilsenrath of the Wall Street Journal that creates the “common knowledge” upon which we should act. The bounce in stocks was evidently hope of the un-taper for as Hilsy noted in a Q&A that the “Fed is likely to stick to its course on rates and bond-buying in the wake of the mixed jobs report,” stocks, USDJPY, and Emerging Market FX started to fade.

Bonds never bought the un-taper by the look of it…