And it was the shot heard 'round the world'......mkts ricocheting across the continents ... as investors can now rest assured that the US Federal Reserve remains the 'buyer of last resort'.....
Dow +442 pts and S&P + 48 pts marking their best 2 day gains in 3 yrs......Asian and European mkts following in kind - Japan added 2.3% on Thursday and added another 2.4% overnight - European mkts all posting gains of 1.5% - 3% Thursday and today as trading begins - US futures are +4 - tickling S&P 2070. European mkts are all taking a bit of breather after the explosive moves higher over the past couple of days as those mkt regroup. Mkts have staged a rally of profound proportions....considering that last week it was all DOOM AND GLOOM.....Weak oil laying the groundwork for a collapsing global economy.....coupled with uncertainty over FED policy..... And with the stroke of a brush - POOF - it's all gone.
Global mkts continue to be excited and I am not surprised......We have been screaming it all year....- no matter who was at the helm of the FED - it would not deter the Fed from remaining cautious - or as Janet now puts it - PATIENT..... It reminds me of the Yul Brenner quote in his role of Ramses II in the famous Cecil B. deMille film - "The Ten Commandments" when he said
"So it shall be written, so it shall be done"
and like clockwork Yellen’s comments confirm that this is to be the case as - the ongoing easy money policies of the Fed and others will continue to underpin mkts as we roll into 2015.
FUZZWORD? BUZZWORD? Whatever......................
Across the pond in Europe - mkts rallied significantly on the US comments but also on the expectation of the ECB joining the party hosted by the FED, The BoJ, The PBoC, The RBA, The BoE and the list goes on..... Even the Swiss are joining the party - introducing their first negative deposit rate since the 1970’s. If this doesn't scream ‘accommodation’ then take me out back and shoot me!
It seems to me that the 2015 FUZZWORD PHRASE of the year will be 'FURTHER ACCOMODATION'. So now - the world awaits the ECB.... Come On!!! What are you waiting for???? Is the teasing just your way of building excitement - taking investors to the point of NO RETURN? We will soon find out.....and the clock ticks....
In very early trade overnight - US Futures were up sharply +8 pts - but have since pared those gains to +4 at 7 am..... 2070 could prove to be a bit of resistance - and after the explosions of the past two days - some churning and backfilling should be expected.
Today is a big day for the mkts....
First we have the December Quadruple Witching - the expiry of 4 sets of options - which will create big volumes as traders roll over or close out those contracts. To be clear you have S&P Index Futures, S&P Index Options, Single Stock Options & Single Stock Futures add in the S&P Rebalance and you have the makings of a potentially volatile day.
There is only the Kansas City Fed report due today and there are two Fed speakers: Evans (10:00 AM), Lacker (12:30 PM).
Affogato - means to drown - in this case you are drowning two scoops of your favorite vanilla ice cream in a shot of hot espresso. Simple. Ice Cream and Espresso. That's it. If you prefer - you can also add a shot of Amaretto di Saronno.
Buon Appetito.
Dow +442 pts and S&P + 48 pts marking their best 2 day gains in 3 yrs......Asian and European mkts following in kind - Japan added 2.3% on Thursday and added another 2.4% overnight - European mkts all posting gains of 1.5% - 3% Thursday and today as trading begins - US futures are +4 - tickling S&P 2070. European mkts are all taking a bit of breather after the explosive moves higher over the past couple of days as those mkt regroup. Mkts have staged a rally of profound proportions....considering that last week it was all DOOM AND GLOOM.....Weak oil laying the groundwork for a collapsing global economy.....coupled with uncertainty over FED policy..... And with the stroke of a brush - POOF - it's all gone.
Global mkts continue to be excited and I am not surprised......We have been screaming it all year....- no matter who was at the helm of the FED - it would not deter the Fed from remaining cautious - or as Janet now puts it - PATIENT..... It reminds me of the Yul Brenner quote in his role of Ramses II in the famous Cecil B. deMille film - "The Ten Commandments" when he said
"So it shall be written, so it shall be done"
and like clockwork Yellen’s comments confirm that this is to be the case as - the ongoing easy money policies of the Fed and others will continue to underpin mkts as we roll into 2015.
FUZZWORD? BUZZWORD? Whatever......................
Across the pond in Europe - mkts rallied significantly on the US comments but also on the expectation of the ECB joining the party hosted by the FED, The BoJ, The PBoC, The RBA, The BoE and the list goes on..... Even the Swiss are joining the party - introducing their first negative deposit rate since the 1970’s. If this doesn't scream ‘accommodation’ then take me out back and shoot me!
It seems to me that the 2015 FUZZWORD PHRASE of the year will be 'FURTHER ACCOMODATION'. So now - the world awaits the ECB.... Come On!!! What are you waiting for???? Is the teasing just your way of building excitement - taking investors to the point of NO RETURN? We will soon find out.....and the clock ticks....
In very early trade overnight - US Futures were up sharply +8 pts - but have since pared those gains to +4 at 7 am..... 2070 could prove to be a bit of resistance - and after the explosions of the past two days - some churning and backfilling should be expected.
Today is a big day for the mkts....
First we have the December Quadruple Witching - the expiry of 4 sets of options - which will create big volumes as traders roll over or close out those contracts. To be clear you have S&P Index Futures, S&P Index Options, Single Stock Options & Single Stock Futures add in the S&P Rebalance and you have the makings of a potentially volatile day.
There is only the Kansas City Fed report due today and there are two Fed speakers: Evans (10:00 AM), Lacker (12:30 PM).
Affogato
Simple but great Holiday Desert -Affogato - means to drown - in this case you are drowning two scoops of your favorite vanilla ice cream in a shot of hot espresso. Simple. Ice Cream and Espresso. That's it. If you prefer - you can also add a shot of Amaretto di Saronno.
Buon Appetito.
Recommended Content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.