Fed Sparks "QE Trade" As Stocks, Bonds, Gold Soar
By Tyler Durden
What happens next?
Well it's been another week… As Goldman said this was the 4th most dovish Fed surprise since 2008
Surprises at FOMC meetings with the “dot plot” in the Summary of Economic Projections have on average been almost twice the size of pre-crisis norms.
Which enabled the 5th weekly S&P rise in a row – just like into the Nov 2015 highs…(before it all collapsed) – Trannies up 5% on the week!!
Perfect close:
- S&P 2049.46
- Dow 17,599.42
Trannies are up 9 weeks in a row – and this was the biggest week since the Bullard Bounce in Oct 2014.
Financials are up 5 weeks in a row for the first time since Sept 2014 right before plunging only to be saved by Bullard…
But we just wonder…
Post-Fed, Silver soared but gold was coincidentally marked down the last 2 days to ensure it did not make stocks look terrible and signal policy error…
Most-Shorted stocks were monkey-hammered higher after The Fed – back to unch ish on the week…
Note that the “weakest momo” stocks have soared in this rally…
Crushing market-neutral funds once again… the worst Quarter for Market-Neutral funds since Q3 2011
Treasury yields tumbled post-Fed with a yuuge 17bps plunge in 2Y Yields…(the biggest 2Y yield drop since Bullard Oct 2014)
The USD Index tumbled on the week – driven by The Fed and follow through in Asia – but notably stable again now for the last 24-36 hours..
This is the lowest weekly close in 5 months… and USD is down 3% YoY
The entire week for commodities pivoted around The Fed, with everything higher…
Crude managed its 5th weekly rise in a row, but things fell apart a little into the week's close (April back below $40)…
And finally, as a reminder – You Are Here…
Charts: Bloomberg
Source: Fed Sparks "QE Trade" As Stocks, Bonds, Gold Soar
