Squeezes everywhere. Nasdaq momo names like FB, YELP, PCLN, and biotechs were on fire after the Fed said the market misinterpreted their hawkishness. In bond land, 2, 3, and 5 year Treasuries getting monster short squeezes on the Fed minutes.
The amount of micromanaging and sensitivity to daily market movements is getting extreme. I guess the Fed got scared of seeing the 5 year yields spike higher after their March meeting and went back and revised what their whole meeting was about. If the stock market ever has a tantrum over QE tapering, and goes down 5 to 10%, the Fed will backtrack and pause the taper. They are that sensitive to the stock and bond markets. They give lip service about inflation and the economy, but their eyes are glued to the daily ticker like daytraders.
Wonder if Dennis Gartman is going to get back on the bull side. If he remains out of equities, this rally will have some serious legs!
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3 comments:
Yeah I thought this part of a longer correction but now it appears we have already corrected and we are going to break out to upside big!
Let's hope that Gartman shows up soon to reveal his recent actions. Extremely valuable contrarian indicator.
Not going to fade this rally, but not going to chase it either. Market still feels like its making a choppy top, but need to get sentiment more bullish before the final hammer drops.
Must follow through tomorrow.
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