It's not irrelevant. It is FED tango. That is to say it is a measured move to signal their intent to cool the market without event disruption by raising the interest rate least important to the markets.
MBS support was cooled not pulled. Now incremental interest rate elevation.
Ben can I have a billion dollars interest free. O.K. Take money and buy every dip. What do I do with the money now?
The markets been up 40 days in a row without a correction. Until the QE ends it is a free for all. Bonds are due for a drubbing soon so scratch that. Commodities are...
You can't control direction but you can control risk. Effective markets not efficient. There-in lies the edges. Patterns repeat just like the sun rises and sets. Ebb and flow.
We shall see. Lay down your money holmes. Buy, buy, buy tomorrow for the big run-up. I am sure by June 31st you'll be sitting on a big pile of profits.
Like a script. Money will move into bonds sparking a bond rally allowing the FED to sell their worthless paper at artificially low prices while monetization unfolds.
The good news is volatility at some point will spike when the music stops and everyone scrambles for a chair.
A little sell program hit at 1167. Kinda expected. The market is foundering. More and more effort to maintain its upward momentum. A safe short is coming soon. The sell at 1167 was for real. A fund used the futures to hedge their longs.
We sold right to support at 1162. Can't take this market down......yet....
In a week or two the rally will be forgotten and it'll be news about all the bad stuff.....
Upside down. Downside up.
Inside out, outside in.
Alice In Wonderland. Drink this and you get smaller, eat the cake and you get bigger.
The problem is you gotta know when to go inside, outside, bigger, smaller...
Easy stuff.
Like a tape recording of my exact sentiment. Slugfest is the correct description.
The risk premium is too low. Artificially low. That is the definition of manipulation whereby risk is skewed by either insider trading or forces other than free market.
The corollary is the equities market...
Yeah except the prospect of increasing interest rates to cover the Treasury auctions has the FED nervous and a "scare" would drive money back into bonds short term.
this is musical chairs.
Equities, real estate, bonds, equities, commdoities, equities........
An exogenous event that will capture the manipulated market by its underwear (shorts--no pun intended). Think earthquake, typhoon, missile, credit default, terrorist attack, war between 2 other countries, etc
Justice....When a complete asshole takes every dime at the end of his illustrious cockroach ridden career and goes "All in" commercial RE leases. Made plenty of coin but in the end what goes around comes around. Shit he'll be too friggin' old to do petty chores on the property jus have to...