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Yellen's Hawkish Hangover Leaves Bonds & Bullion Bruised & Stocks Steady

This won't end well...

 

*  *  *

First things first, The Fed managed to convince the market - despite the collapse of fundamentals - that it will hike in December...December odds the highest they have ever been...

 

Having dumped the post-FOMC gains early on, stocks bounced modestly... then acelerated in the last 20 minutes before last minute selling...

 

But in the day only Trannies ended green (as a late ramp failed)

 

All thanks to a VIX-crushing ramping S&P into the green...

 

Though a notable VIX decouple..

 

But bonds, gold, and crude are all red post-FOMC

 

And on the week...Small Caps unch, Trannies biggest losers...

 

Trannies outperformed (and did it again against crude)...pushing up to the 100DMA

 

Financials continue to bounce (but credit remains ominously weak)...

 

But Camera-on-a-stick crashed to record lows...

 

And Valeant had another tough day...

 

Credit markets decoupled from equities today...

 

With VXX trading in a very narrow range today...

 

But Treasury yields played catch up to stocks...

 

As the entire curve shot up today (with the long-end underperforming 2Y +2bps, 30Y +8bps)

 

The USDollar gave back some of its hawkish Fed gains...AUD continues to get slammed as EUR rallied back somewhat...

 

And The Dollar slipped back against Asian FX also (but remains notably stronger post FOMC)

 

Commodities were very mixed today...

 

With crude dump and pumping (run stops) and dumping...

 

And Nattie making new cycle lows...

 

Charts: Bloomberg

Bonus Chart: "Data-Dependent" Fed...

pic.twitter.com/aSEaiyiWdj

— Not Jim Cramer (@Not_Jim_Cramer)

Bonus Bonus Chart: The Bulls Are Back In Town...

AAII Blog: Optimism among individual investors is above 40% for the first time 35 weeks. https://t.co/hIzEhrm4Mj pic.twitter.com/eMfv5Y75ED

— Charles Rotblut, CFA (@CharlesRAAII)