Ahead of Tomorrow's Fedlines
As the "markets" anxiously await the statement that will come tomorrow at the conclusion on the current FOMC meeting, here are some charts that show what has transpired in the six weeks since the previous FOMC.
The last bit of Fedlines came out following the previous FOMC meeting, which concluded on Wednesday, September 17. Stocks peaked two days later at S&P 2020 before falling nearly 10% over the next three weeks. They've since rebounded to nearly unchanged vs 9/17 levels.
Gold tanked to an early October bounce from $1180 support and then rallied $70 in the face of 37,000 new naked Cartel shorts. In the end, just like stocks, gold is nearly unchanged vs 9/17.
But the Big Winner, and the one we should likely be following most closely for clues, is the bond market. Following the last set of Fedlines, the 10-year Note was at 2.62% and The Long Bond was at 3.37%. As of right now, they are 2.28% and 3.05% respectively.
That's a pretty big move in just six weeks and doesn't even include the HUGE drops two weeks ago that were soon retraced. What did Old Mother Fellen say in last month's Fedlines that so spooked and rallied the bond market? I guess it all had to do with "considerable time". (http://www.zerohedge.com/news/2014-09-17/fomc-keeps-considerable-wealth-effect-dream-alive) Will that specific language remain in tomorrow's Fedlines? Who knows? Who cares?? Can you even believe that gold (and silver) have been reduced to having their daily fiat-conversion value dictated by a few words in a meaningless FOMC Fedline??? What a joke/farce this has all become...